                                 CODE OF VIRGINIA

LESSEE&#8217;S DAMAGES FOR NONDELIVERY, REPUDIATION, DEFAULT, AND BREACH OF
WARRANTY IN REGARD TO ACCEPTED GOODS (§ 8.2A-519)

1. Except as otherwise provided with respect to damages liquidated in the lease
agreement (&#xA7; 8.2A-504) or otherwise determined pursuant to agreement of the
parties (&#xA7;&#xA7; 8.1A-302 and 8.2A-503), if a lessee elects not to cover or
a lessee elects to cover and the cover is by lease agreement that for any reason
does not qualify for treatment under subsection (2) of &#xA7; 8.2A-518, or is by
purchase or otherwise, the measure of damages for nondelivery or repudiation by
the lessor or for rejection or revocation of acceptance by the lessee is the
present value as of the date of the default, of the then market rent minus the
present value as of the same date of the original rent, computed for the
remaining lease term of the original lease agreement, together with incidental
and consequential damages, less expenses saved in consequence of the
lessor&#8217;s default.

2. Market rent is to be determined as of the place for tender or, in cases of
rejection after arrival or revocation of acceptance, as of the place of arrival.

3. Except as otherwise agreed, the lessee has accepted goods and given
notification (subsection (3) of &#xA7; 8.2A-516), the measure of damages for
nonconforming tender or delivery or other default by a lessor is the loss
resulting in the ordinary course of events from the lessor&#8217;s default as
determined in any manner that is reasonable together with incidental and
consequential damages, less expenses saved in consequence of the lessor&#8217;s
default.

4. Except as otherwise agreed, the measure of damages for breach of warranty is
the present value at the time and place of acceptance of the difference between
the value of the use of the goods accepted and the value if they had been as
warranted for the lease term, unless special circumstances show proximate
damages of a different amount, together with incidental and consequential
damages, less expenses saved in consequence of the lessor&#8217;s default or
breach of warranty.

HISTORY: 1991, c. 536; 2003, c. 353.