{"data":{"id":"us-ky/krs-355.2-718","jurisdiction":"us-ky","citation":"KRS 355.2-718","heading":"Liquidation or limitation of damages -- Deposits.","body":"(1) Damages for breach by either party may be liquidated in the agreement but only at\nan amount which is reasonable in the light of the anticipated or actual harm caused\nby the breach, the difficulties of proof of loss, and the inconvenience or\nnonfeasibility of otherwise obtaining an adequate remedy. A term fixing\nunreasonably large liquidated damages is void as a penalty.\n(2) Where the seller justifiably withholds delivery of goods because of the buyer's\nbreach, the buyer is entitled to restitution of any amo unt by which the sum of his\npayments exceeds\n(a) the amount to which the seller is entitled by virtue of terms liquidating the\nseller's damages in accordance with subsection (1), or\n(b) in the absence of such terms, twenty percent (20%) of the value of the  total\nperformance for which the buyer is obligated under the contract or five\nhundred dollars ($500), whichever is smaller.\n(3) The buyer's right to restitution under subsection (2) is subject to offset to the extent\nthat the seller establishes\n(a) a righ t to recover damages under the provisions of this article other than\nsubsection (1), and\n(b) the amount or value of any benefits received by the buyer directly or indirectly\nby reason of the contract.\n(4) Where a seller has received payment in goods their reasonable value or the proceeds\nof their resale shall be treated as payments for the purposes of subsection (2); but if\nthe seller has notice of the buyer's breach before reselling goods received in part\nperformance, his resale is subject to the conditions laid down in this article on resale\nby an aggrieved seller (KRS 355.2-706).","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33340","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:42Z","sha256":"f8bc308ae380898c154250322ed967f31c8af56154634efeed70bb5d8518b756","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.2-717","next":"us-ky/krs-355.2-719"},"notice":"GroundRules: Original legal text. Not legal advice."}