New Jersey § 12a:2a-504

§ 12a:2a-504.

(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 this provision

does not comply with subsection (1), or this provision is an exclusive or limited

remedy that circumstances cause to fail of its essential purpose, remedy may be had

as provided in this chapter. (3) If the lessor justifiably withholds or stops delivery of goods because of the

lessee's default or insolvency (12A:2A-525 or 12A:2A-526), the lessee is entitled

to restitution of any amount by which the sum of the lessee's 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 that 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 chapter 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.