South Dakota § 57A-2A-504 - Liquidation of damages.
Full text of South Dakota South Dakota Codified Laws § 57A-2A-504 — Liquidation of damages., with citation guidance and answers to common questions.
§ 57A-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 chapter.
(3) If the lessor justifiably withholds or stops delivery of goods because of the lessee's default or insolvency (§ 57A-2A-525 or 57A-2A-526), the lessee is entitled to restitution of any amount by which the sum of his 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, twenty 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 five hundred dollars.
(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 chapter 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.
Source: SL 1989, ch 419, § 1.
Source: official South Dakota text · Last verified 2026-08-27
Frequently Asked Questions About South Dakota § 57A-2A-504
What does South Dakota Codified Laws § 57A-2A-504 cover?
Section 57A-2A-504 ("Liquidation of damages.") is part of the South Dakota Codified Laws, the codified statutory law of South Dakota. 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 South Dakota § 57A-2A-504?
A common citation format is "South Dakota Codified Laws § 57A-2A-504" (South Dakota). 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 South Dakota law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the South Dakota official source linked on this page or consult a licensed South Dakota attorney.
How does South Dakota § 57A-2A-504 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in South Dakota 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 South Dakota.