(1) Damages payable by either party for default, or for any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss of or damage to the 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 the provision does not comply with sub. (1), or the provision is an exclusive or limited remedy that circumstances cause to fail of its essential purpose, remedy may be had as provided in this chapter. (3) If the lessor justifiably withholds or stops delivery of goods because of the lessee’s default or insolvency, the lessee is entitled to restitution of any amount by which the sum of his or her payments exceeds any of the following: (a) The amount to which the lessor is entitled by virtue of terms liquidating the lessor’s damages in accordance with sub. (1). (b) In the absence of terms liquidating the lessor’s damages in accordance with sub. (1), 20 percent of the then present value of the total rent that the lessee was obligated to pay for the balance of the lease term, or, in the case of a consumer lease, the lesser of that amount or $500. (4) A lessee’s right to restitution under sub. (3) is subject to offset to the extent that the lessor establishes all of the following: (a) A right to recover damages under provisions of this chapter other than sub. (1). (b) The amount or value of any benefits received by the lessee directly or indirectly by reason of the lease contract.
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