ORS 72A.5040
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 the 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. A provision in the lease agreement which states that damages in the event of the lessee’s default and the lessor’s sale of the goods include, in addition to costs payable to third parties, any past due amounts plus the sum of the present value of future rentals, the lessor’s costs of enforcing the lease, the lessor’s reasonably predictable residual at expiration, reasonable compensation for any loss of tax benefits, or an equivalent amount, and any other damages suffered or to be suffered by the lessor because of the lessee’s default, less the net proceeds of sale, is reasonable.

(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 under ORS 72A.5250 (Lessor’s right to possession of goods) or 72A.5260 (Lessor’s stoppage of delivery in transit or otherwise), 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) of this section; 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) 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. [1989 c.676 §51]

Source: Section 72A.5040 — Liquidation of damages, https://www.­oregonlegislature.­gov/bills_laws/ors/ors72A.­html.

72A.1010
Short title
72A.1020
Scope
72A.1030
Definitions and index of definitions
72A.1040
Leases subject to other statutes
72A.1050
Territorial application of act to goods covered by certificate of title
72A.1060
Limitation on power of parties to consumer lease to choose applicable law and judicial forum
72A.1070
Waiver or renunciation of claim or right after default
72A.1080
Unconscionability
72A.1090
Option to accelerate at will
72A.1095
Subordination by agreement
72A.2010
Statute of frauds
72A.2020
Final written expression
72A.2030
Seals inoperative
72A.2040
Formation in general
72A.2050
Firm offers
72A.2060
Offer and acceptance in formation of lease contract
72A.2080
Modification, rescission and waiver
72A.2090
Lessee under finance lease as beneficiary of supply contract
72A.2100
Express warranties
72A.2110
Warranties against interference and against infringement
72A.2120
Implied warranty of merchantability
72A.2130
Implied warranty of fitness for particular purpose
72A.2140
Exclusion or modification of warranties
72A.2150
Cumulation and conflict of warranties express or implied
72A.2160
Third-party beneficiaries of express and implied warranties
72A.2170
Identification
72A.2180
Insurance and proceeds
72A.2190
Risk of loss
72A.2200
Effect of default on risk of loss
72A.2210
Casualty to identified goods
72A.3010
Enforceability of lease contract
72A.3020
Title to and possession of goods
72A.3030
Alienability of party’s interest under lease contract or of lessor’s residual interest in goods
72A.3040
Subsequent lease of goods by lessor
72A.3050
Sale or sublease of goods by lessee
72A.3060
Priority of certain liens arising by operation of law
72A.3070
Priority of liens arising by attachment or levy on goods
72A.3080
Special rights of creditors
72A.3090
Lessor’s and lessee’s rights when goods become fixtures
72A.3095
Fixture filing recorded and indexed as mortgage
72A.3100
Lessor’s and lessee’s rights when goods become accessions
72A.4010
Insecurity
72A.4020
Anticipatory repudiation
72A.4030
Retraction of anticipatory repudiation
72A.4040
Substituted performance
72A.4050
Excused performance
72A.4060
Procedure on excused performance
72A.4070
Irrevocable promises
72A.5010
Default
72A.5020
Notice after default
72A.5030
Modification or impairment of rights and remedies
72A.5040
Liquidation of damages
72A.5050
Cancellation and termination and effect of cancellation, termination, rescission or fraud on rights and remedies
72A.5060
Statute of limitations
72A.5070
Proof of market rent
72A.5080
Lessee’s remedies
72A.5090
Lessee’s rights on improper delivery
72A.5100
Installment lease contracts
72A.5110
Merchant lessee’s duties as to rightfully rejected goods
72A.5120
Lessee’s duties as to rightfully rejected goods
72A.5130
Cure by lessor of improper tender or delivery
72A.5140
Waiver of lessee’s objections
72A.5150
Acceptance of goods
72A.5160
Effect of acceptance of goods
72A.5170
Revocation of acceptance of goods
72A.5180
Cover
72A.5190
Lessee’s damages for nondelivery, repudiation, default and breach of warranty in regard to accepted goods
72A.5200
Lessee’s incidental and consequential damages
72A.5210
Lessee’s right to specific performance or replevin
72A.5220
Lessee’s right to goods on lessor’s insolvency
72A.5230
Lessor’s remedies
72A.5240
Lessor’s right to identify goods to lease contract
72A.5250
Lessor’s right to possession of goods
72A.5260
Lessor’s stoppage of delivery in transit or otherwise
72A.5270
Lessor’s rights to dispose of goods
72A.5280
Lessor’s damages for default
72A.5290
Lessor’s action for the rent
72A.5295
Lessor’s recovery for loss of or damage to residual interest in goods
72A.5300
Lessor’s incidental damages
72A.5310
Standing to sue third parties for injury to goods
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