                                 CODE OF VIRGINIA

RECOUPMENT (§ 59.1-508.10)

a. Except as otherwise provided in subsection (b), an aggrieved party, upon
notifying the party in breach of contract of its intention to do so, may deduct
all or any part of the damages resulting from the breach from any payments still
due under the same contract.

b. If a breach of contract is not material with reference to the particular
performance, an aggrieved party may exercise its rights under subsection (a)
only if the agreement does not require further affirmative performance by the
other party and the amount of damages deducted can be readily liquidated under
the agreement.

HISTORY: 2000, cc. 101, 996.