Nevada § 104A.2504 - Liquidation of damages

§ 104A.2504. 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, 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 the Article. 3. If the lessor justifiably withholds or stops delivery of goods because of the lessee's

default or insolvency ( NRS 104A.2525 or 104A.2526 ), 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; 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 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; and (b) The amount or value of any benefits received by the lessee directly or indirectly

by reason of the lease contract.