The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 2A-504)
-
§ 2A—504. Liquidation of damages
(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) of this section, 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 (§ 2A—525 or 2A—526), the lessee is entitled to restitution of any amount by which the sum of his or her payments exceeds:
(a) the amount to which the lessor is entitled by virtue of terms liquidating the lessor’s
damages in accordance with subsection (1) of this section; 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) of this section 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) of this section; and
(b) the amount or value of any benefits received by the lessee directly or indirectly
by reason of the lease contract. (Added 1993, No. 158 (Adj. Sess.), § 10, eff. Jan. 1, 1995.)