Virginia Code 59.1-508.4: Liquidation of damages
(a) Damages for breach of contract by either party may be liquidated by agreement in an amount that is reasonable in light of:
Terms Used In Virginia Code 59.1-508.4
- Aggrieved party: means a party entitled to a remedy for breach of contract. See Virginia Code 59.1-501.2
- Agreement: means the bargain of the parties in fact as found in their language or by implication from other circumstances, including course of performance, course of dealing, and usage of trade as provided in this chapter. See Virginia Code 59.1-501.2
- Contract: A legal written agreement that becomes binding when signed.
- Contract: means the total legal obligation resulting from the parties' agreement as affected by this chapter and other applicable law. See Virginia Code 59.1-501.2
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Party: means a person that engages in a transaction or makes an agreement under this chapter. See Virginia Code 59.1-501.2
- Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
(1) the loss anticipated at the time of contracting;
(2) the actual loss; or
(3) the actual or anticipated difficulties of proving loss in the event of breach.
(b) If a term liquidating damages is unenforceable under this subsection, the aggrieved party may pursue the remedies provided in this chapter, except as limited by other terms of the contract.
(c) If a party justifiably withholds delivery of copies because of the other party’s breach of contract, the party in breach is entitled to restitution for any amount by which the sum of the payments it made for the copies exceeds the amount of the liquidated damages payable to the aggrieved party in accordance with subsection (a). The right to restitution is subject to offset to the extent that the aggrieved party establishes:
(1) a right to recover damages other than under subsection (a); and
(2) the amount or value of any benefits received by the party in breach, directly or indirectly, by reason of the contract.
(d) A term that does not liquidate damages, but that limits damages available to the aggrieved party, must be evaluated under § 59.1-508.3.