                                 CODE OF VIRGINIA

CANCELLATION AND TERMINATION AND EFFECT OF CANCELLATION, TERMINATION,
RESCISSION, OR FRAUD ON RIGHTS AND REMEDIES (§ 8.2A-505)

1. On cancellation of the lease contract, all obligations that are still
executory on both sides are discharged, but any right based on prior default or
performance survives, and the cancelling party also retains any remedy for
default of the whole lease contract or any unperformed balance.

2. On termination of the lease contract, all obligations that are still
executory on both sides are discharged but any right based on prior default or
performance survives.

3. Unless the contrary intention clearly appears, expressions of
&#8220;cancellation,&#8221; &#8220;rescission,&#8221; or the like of the lease
contract may not be construed as a renunciation or discharge of any claim in
damages for an antecedent default.

4. Rights and remedies for material misrepresentation or fraud include all
rights and remedies available under this title for default.

5. Neither rescission nor a claim for rescission of the lease contract nor
rejection or return of the goods may bar or be deemed inconsistent with a claim
for damages or other right or remedy.

HISTORY: 1991, c. 536.