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Can you summarize NHRS 382-A:2A-504?
UNIFORM COMMERCIAL CODE > Liquidation of Damages.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, governs the liquidation of damages in lease agreements. It states that damages payable by either party for default or any other act or omission may be liquidated in the lease agreement, but only at an amount or by a formula that is reasonable in light of the anticipated harm caused by the default or act. If the lease agreement provides for liquidation of damages that do not comply with the reasonableness requirement or fail of their essential purpose, alternative remedies may be sought. Additionally, if the lessor justifiably withholds or stops delivery of goods due to the lessee’s default or insolvency, the lessee is entitled to restitution of any excess payments made. The amount of restitution is determined based on the terms liquidating the lessor’s damages or, in their absence, a percentage of the total rent the lessee was obligated to pay. The lessee’s right to restitution is subject to offset if the lessor can establish a right to recover damages under other provisions of the Uniform Commercial Code and the value of any benefits received by the lessee. No specific penalties are mentioned in this document.
Whom does it apply to?
Parties involved in lease agreements
What does it govern?
Liquidation of Damages
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New Hampshire