California Commercial Code

§ 2718

COM § 2718Div. 2 · Ch. 7

Statute text

(1)Damages for breach by either party may be liquidated in the agreement subject to and in compliance with Section 1671 of the Civil Code. If the agreement provides for liquidation of damages, and such provision does not comply with Section 1671 of the Civil Code, remedy may be had as provided in this division.

(2)Where the seller justifiably withholds delivery of goods because of the buyer’s breach, the buyer is entitled to restitution of any amount by which the sum of his or her payments exceeds:

(a)The amount to which the seller is entitled by virtue of terms liquidating the seller’s damages in accordance with subdivision (1), or

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Legislative history

Amended by Stats. 1988, Ch. 1368, Sec. 10. Operative January 1, 1990, by Sec. 18 of Ch. 1368.