Alaska § 45.02.718 - Liquidation or limitation of damages; deposits.
Full text of Alaska Alaska Statutes § 45.02.718 — Liquidation or limitation of damages; deposits., with citation guidance and answers to common questions.
§ 45.02.718. Liquidation or limitation of damages; deposits.
(a) Damages for breach by either party may be liquidated in the agreement but only at an amount that is reasonable in the light of the anticipated or actual harm caused by the breach, the difficulties of proof of loss, and the inconvenience or nonfeasibility of otherwise obtaining an adequate remedy. A term fixing unreasonably large liquidated damages is void as a penalty.
(b) If the seller justifiably withholds delivery of goods because of the buyer's breach, the buyer is entitled to restitution of an amount by which the sum of the buyer's payments exceeds (1) the amount to which the seller is entitled by virtue of terms liquidating the seller's damages in accordance with (a) of this section, or
(2) in the absence of those terms, 20 percent of the value of the total performance for which the buyer is obligated under the contract or $500, whichever is smaller.
(c) The buyer's right to restitution under (b) of this section is subject to offset to the extent that the seller establishes (1) a right to recover damages under this chapter other than (a) of this section, and
(2) the amount or value of benefits received by the buyer directly or indirectly by reason of the contract.
(d) If a seller has received payment in goods, their reasonable value or the proceeds of their resale shall be treated as payments for the purposes of (b) of this section; but, if the seller has notice of the buyer's breach before reselling goods received in part performance, the resale is subject to the conditions laid down on resale by an aggrieved seller ( AS 45.02.706 ).
Source: official Alaska text · Last verified 2026-08-27
Frequently Asked Questions About Alaska § 45.02.718
What does Alaska Statutes § 45.02.718 cover?
Section 45.02.718 ("Liquidation or limitation of damages; deposits.") is part of the Alaska Statutes, the codified statutory law of Alaska. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alaska § 45.02.718?
A common citation format is "Alaska Statutes § 45.02.718" (Alaska). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alaska law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alaska official source linked on this page or consult a licensed Alaska attorney.
How does Alaska § 45.02.718 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alaska can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alaska.