Sec. 42a-2A-710. Liquidation of damages; deposits.
Sec. 42a-2A-710. Liquidation of damages; deposits. (a) Damages for default or
any other act or omission, including indemnity for loss or diminution of anticipated tax
benefits or loss or damage to the 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 either the
actual loss or the then anticipated loss caused by the default or other act or omission. If
a term fixing liquidated damages is unenforceable under this subsection, the aggrieved
party may pursue the remedies provided in this article. A term that does not liquidate
damages but attempts to limit damages available to the aggrieved party must be evaluated
under section 42a-2A-712.
(b) If the lessor justifiably withholds delivery of goods or stops performance because of the lessee's default or insolvency, the lessee is entitled to restitution of the
amount by which the sum of payments exceeds the amount to which the lessor is entitled
under a term fixing liquidated damages in accordance with subsection (a) of this section,
except that, in the case of a consumer lease, the lessor is entitled to the lesser of such
restitution amount or five hundred dollars.
(c) The lessee's right to restitution under subsection (b) of this section is subject to
setoff to the extent that the lessor establishes a right to recover damages under the
provisions of this article other than subsection (a) of this section and to the extent of the
amount or value of any benefits received by the lessee directly or indirectly by reason
of the lease contract.
(P.A. 02-131, S. 63.)