2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 2A5 - Default
Section 2A504 - Liquidation of damages

     § 2A504.  Liquidation of damages.
        (a)  General rule.--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.
        (b)  Invalidity or failure of purpose of remedy.--If the
     lease agreement provides for liquidation of damages, and such
     provision does not comply with subsection (a), 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 division.
        (c)  Right of lessee to restitution.--If the lessor
     justifiably withholds or stops delivery of goods because of the
     lessee's default or insolvency (section 2A525 or 2A526), the
     lessee is entitled to restitution of any amount by which the sum
     of his payments exceeds:
            (1)  the amount to which the lessor is entitled by virtue
        of terms liquidating the lessor's damages in accordance with
        subsection (a); or
            (2)  in the absence of those terms, 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 $500.
        (d)  Restitution subject to offset.--A lessee's right to
     restitution under subsection (c) is subject to offset to the
     extent the lessor establishes:
            (1)  a right to recover damages under the provisions of
        this division other than subsection (a); and
            (2)  the amount or value of any benefits received by the
        lessee directly or indirectly by reason of the lease
        contract.

        Cross References.  Section 2A504 is referred to in sections
     2A503, 2A518, 2A519, 2A527, 2A528 of this title.