(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 subsection (1), 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 Article.
(3) If the lessor justifiably withholds or stops delivery of goods
because of the lessee's default or insolvency (Section 2-A-525 or
2-A-526), the lessee is entitled to restitution of any amount by which
the sum of his or her payment exceeds:
(a) the amount to which the lessor is entitled by virtue of terms
liquidating the lessor's damages in accordance with
subsection (1); or
(b) in the absence of those terms, 20 percent 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 $500.
(4) A lessee's right to restitution under subsection (3) is subject to
offset to the extent the lessor establishes:
(a) a right to recover damages under the provisions of this
Article other than subsection (1); and
(b) the amount or value of any benefits received by the lessee
directly or indirectly by reason of the lease contract.
Structure New York Laws
2-A-502 - Notice After Default.
2-A-503 - Modification or Impairment of Rights and Remedies.
2-A-504 - Liquidation of Damages.
2-A-506 - Statute of Limitations.
2-A-507 - Proof of Market Rent: Time and Place.
2-A-509 - Lessee's Rights on Improper Delivery: Rightful Rejection.
2-A-510 - Installment Lease Contracts: Rejection and Default.
2-A-511 - Merchant Lessee's Duties as to Rightfully Rejected Goods.
2-A-512 - Lessee's Duties as to Rightfully Rejected Goods.
2-A-513 - Cure by Lessor of Improper Tender or Delivery; Replacement.
2-A-514 - Waiver of Lessee's Objections.
2-A-515 - Acceptance of Goods.
2-A-517 - Revocation of Acceptance of Goods.
2-A-518 - Cover; Substitute Goods.
2-A-520 - Lessee's Incidental and Consequential Damages.
2-A-521 - Lessee's Right to Specific Performance or Replevin.
2-A-522 - Lessee's Right to Goods on Lessor's Insolvency.
2-A-524 - Lessor's Right to Identify Goods to Lease Contract.
2-A-525 - Lessor's Right to Possession of Goods.
2-A-526 - Lessor's Stoppage of Delivery in Transit or Otherwise.
2-A-527 - Lessor's Rights to Dispose of Goods.
2-A-528 - Lessor's Damages for Non-Acceptance, Failure to Pay, Repudiation, or Other Default.
2-A-529 - Lessor's Action for the Rent.
2-A-530 - Lessor's Incidental Damages.
2-A-531 - Standing to Sue Third Parties for Injury to Goods.