                                 CODE OF VIRGINIA

LESSOR&#8217;S DAMAGES FOR NONACCEPTANCE OR REPUDIATION (§ 8.2A-528)

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 lessor elects to retain the
goods or a lessor elects to dispose of the goods and disposition is by lease
agreement that for any reason does not qualify for treatment under subsection
(2) of &#xA7; 8.2A-527, or is by sale or otherwise, the lessor may recover from
the lessee as damages for a default of the type described in subsection (1) of
&#xA7; 8.2A-523 or subdivision (3) (a) of &#xA7; 8.2A-523, or, if agreed, for
other default of the lessee (i) accrued and unpaid rent as of the date of
default if the lessee has never taken possession of the goods or, if the lessee
has taken possession of the goods, as of the date the lessor repossessed the
goods or an earlier date on which the lessee makes a tender of the goods to the
lessor, (ii) the present value as of the date determined under clause (i) of the
total rent for the then remaining lease term of the original lease agreement
minus the present value as of the same date of the market rent at the place
where the goods are located computed for the same lease term, and (iii) any
incidental damages allowed under &#xA7; 8.2A-530, less expenses saved in
consequence of the lessee&#8217;s default.

2. If the measure of damages provided in subsection (1) of this section is
inadequate to put a lessor in as good a position as performance would have, the
measure of damages is the present value of the profit, including reasonable
overhead, the lessor would have made from full performance by the lessee,
together with any incidental damages allowed under &#xA7; 8.2A-530, due
allowance for costs reasonably incurred and due credit for payments or proceeds
of disposition.

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