California Commercial Code

§ 10504

COM § 10504 Effective Jul 15, 1991Div. 10 · Ch. 5 · Art. 1

Statute text

(a)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 the lessor’s residual interest, may be liquidated in the lease agreement subject to and in compliance with Section 1671 of the Civil Code.

(b)If the lease agreement provides for liquidation of damages, and such provision does not comply with subdivision (a), remedy may be had as provided in this division.

(c)If the lessor justifiably withholds or stops delivery of goods because of the lessee’s default or insolvency (Section 10525 or 10526), the lessee is entitled to restitution of any amount by which the sum of his or her payments exceeds:

…

Legislative history

Amended by Stats. 1991, Ch. 111, Sec. 42. Effective July 15, 1991.