(810 ILCS 5/2A-504)
(from Ch. 26, par. 2A-504)
Liquidation of damages.
(1) Damages payable by either party for default, or any
other act or omission, including indemnity for loss or diminution
of anticipated tax benefits or loss or damage to lessor's residual
interest, may be liquidated in the lease agreement but only at an
amount or by a formula that is reasonable in light of the then
anticipated harm caused by the default or other act or omission.
(2) If the lease agreement provides for liquidation of
damages, and such provision does not comply with
subsection (1), or such provision is an exclusive or limited
remedy that circumstances cause to fail of its essential purpose,
remedy may be had as provided in this Article.
(3) If the lessor justifiably withholds or stops delivery of
goods because of the lessee's default or insolvency
(Section 2A-525 or 2A-526), the lessee is entitled to restitution
of any amount by which the sum of his or her payments
(a) the amount to which the lessor is entitled by
virtue of terms liquidating the lessor's damages in accordance with subsection (1); or
(b) in the absence of those terms, 20% of the then
present value of the total rent the lessee was obligated to pay for the balance of the lease term, or, in the case of a consumer lease, the lesser of such amount or $500.
(4) A lessee's right to restitution under subsection (3) is
subject to offset to the extent the lessor establishes:
(a) a right to recover damages under the provisions
of this Article other than subsection (1); and
(b) the amount or value of any benefits received by
the lessee directly or indirectly by reason of the lease contract.
(Source: P.A. 87-493.)