28-12-504. LIQUIDATION OF DAMAGES. (1) Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss or damage to lessor’s residual interest, may be liquidated in the lease agreement but only at an amount or by a formula that is reasonable in light of the then anticipated harm caused by the default or other act or omission.
(2) If the lease agreement provides for liquidation of damages, and such provision does not comply with the provisions of subsection (1) of this section, or such provision is an exclusive or limited remedy that circumstances cause to fail of its essential purpose, remedy may be had as provided in this chapter.
(3) If the lessor justifiably withholds or stops delivery of goods because of the lessee’s default or insolvency (section 28-12-525 or 28-12-526), the lessee is entitled to restitution of any amount by which the sum of his payments exceeds:
(a) The amount to which the lessor is entitled by virtue of terms liquidating the lessor’s damages in accordance with the provisions of subsection (1) of this section; or
(b) In the absence of those terms, twenty percent (20%) of the then present value of the total rent the lessee was obligated to pay for the balance of the lease term, or, in the case of a consumer lease, the lesser of such amount or five hundred dollars ($500).
(4) A lessee’s right to restitution under the provisions of subsection (3) of this section is subject to offset to the extent the lessor establishes:
(a) A right to recover damages under the provisions of this chapter other than the provisions of subsection (1) of this section; and
(b) The amount or value of any benefits received by the lessee directly or indirectly by reason of the lease contract.
History:
[28-12-504, added 1993, ch. 287, sec. 1, p. 1000.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 12 - UNIFORM COMMERCIAL CODE — LEASES
Section 28-12-501 - DEFAULT — PROCEDURE.
Section 28-12-502 - NOTICE AFTER DEFAULT.
Section 28-12-503 - MODIFICATION OR IMPAIRMENT OF RIGHTS AND REMEDIES.
Section 28-12-504 - LIQUIDATION OF DAMAGES.
Section 28-12-506 - STATUTE OF LIMITATIONS.
Section 28-12-507 - PROOF OF MARKET RENT — TIME AND PLACE.
Section 28-12-508 - LESSEE’S REMEDIES.
Section 28-12-509 - LESSEE’S RIGHTS ON IMPROPER DELIVERY — RIGHTFUL REJECTION.
Section 28-12-510 - INSTALLMENT LEASE CONTRACTS — REJECTION AND DEFAULT.
Section 28-12-511 - MERCHANT LESSEE’S DUTIES AS TO RIGHTFULLY REJECTED GOODS.
Section 28-12-512 - LESSEE’S DUTIES AS TO RIGHTFULLY REJECTED GOODS.
Section 28-12-513 - CURE BY LESSOR OF IMPROPER TENDER OR DELIVERY — REPLACEMENT.
Section 28-12-514 - WAIVER OF LESSEE’S OBJECTIONS.
Section 28-12-515 - ACCEPTANCE OF GOODS.
Section 28-12-517 - REVOCATION OF ACCEPTANCE OF GOODS.
Section 28-12-518 - COVER — SUBSTITUTE GOODS.
Section 28-12-520 - LESSEE’S INCIDENTAL AND CONSEQUENTIAL DAMAGES.
Section 28-12-521 - LESSEE’S RIGHT TO SPECIFIC PERFORMANCE OR REPLEVIN.
Section 28-12-522 - LESSEE’S RIGHT TO GOODS ON LESSOR’S INSOLVENCY.
Section 28-12-523 - LESSOR’S REMEDIES.
Section 28-12-524 - LESSOR’S RIGHT TO IDENTIFY GOODS TO LEASE CONTRACT.
Section 28-12-525 - LESSOR’S RIGHT TO POSSESSION OF GOODS.
Section 28-12-526 - LESSOR’S STOPPAGE OF DELIVERY IN TRANSIT OR OTHERWISE.
Section 28-12-527 - LESSOR’S RIGHTS TO DISPOSE OF GOODS.
Section 28-12-529 - LESSOR’S ACTION FOR THE RENT.
Section 28-12-530 - LESSOR’S INCIDENTAL DAMAGES.
Section 28-12-531 - STANDING TO SUE THIRD PARTIES FOR INJURY TO GOODS.