C.R.S. Section 4-2.5-504
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) of this section, 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 4-2.5-525 or 4-2.5-526), the lessee is entitled to restitution of any amount by which the sum of his or her payments exceeds:

(a)

The amount to which the lessor is entitled by virtue of terms liquidating the lessor’s damages in accordance with subsection (1) of this section; or

(b)

In the absence of those terms, twenty percent 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 five hundred dollars.

(4)

A lessee’s right to restitution under subsection (3) of this section 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) of this section; and

(b)

The amount or value of any benefits received by the lessee directly or indirectly by reason of the lease contract.

Source: Section 4-2.5-504 — Liquidation of damages, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-04.­pdf (accessed Oct. 20, 2023).

4‑2.5‑101
Short title 4‑2.5‑102
Scope 4‑2.5‑103
Definitions and index of definitions 4‑2.5‑104
Leases subject to other law 4‑2.5‑105
Territorial application of article to goods covered by certificate of title 4‑2.5‑106
Limitation on power of parties to consumer lease to choose applicable law and judicial forum 4‑2.5‑107
Waiver or renunciation of claim or right after default 4‑2.5‑108
Unconscionability 4‑2.5‑109
Option to accelerate at will 4‑2.5‑201
Statute of frauds 4‑2.5‑202
Final written expression: Parol or extrinsic evidence 4‑2.5‑203
Seals inoperative 4‑2.5‑204
Formation in general 4‑2.5‑205
Firm offers 4‑2.5‑206
Offer and acceptance in formation of lease contract 4‑2.5‑207
Course of performance or practical construction 4‑2.5‑208
Modification, rescission, and waiver 4‑2.5‑209
Lessee under finance lease as beneficiary of supply contract 4‑2.5‑210
Express warranties 4‑2.5‑211
Warranties against interference and against infringement 4‑2.5‑212
Implied warranty of merchantability 4‑2.5‑213
Implied warranty of fitness for particular purpose 4‑2.5‑214
Exclusion or modification of warranties 4‑2.5‑215
Cumulation and conflict of warranties express or implied 4‑2.5‑216
Third-party beneficiaries of express and implied warranties 4‑2.5‑217
Identification 4‑2.5‑218
Insurance and proceeds 4‑2.5‑219
Risk of loss 4‑2.5‑220
Effect of default on risk of loss 4‑2.5‑221
Casualty to identified goods 4‑2.5‑301
Enforceability of lease contract 4‑2.5‑302
Title to and possession of goods 4‑2.5‑303
Alienability of party’s interest under lease contract or of lessor’s residual interest in goods 4‑2.5‑304
Subsequent lease of goods by lessor 4‑2.5‑305
Sale or sublease of goods by lessee 4‑2.5‑306
Priority of certain liens arising by operation of law 4‑2.5‑307
Priority of liens arising by attachment or levy on, security interests in, and other claims to goods 4‑2.5‑308
Special rights of creditors 4‑2.5‑309
Lessor’s and lessee’s rights when goods become fixtures 4‑2.5‑310
Lessor’s and lessee’s rights when goods become accessions 4‑2.5‑311
Priority subject to subordination 4‑2.5‑401
Insecurity: Adequate assurance of performance 4‑2.5‑402
Anticipatory repudiation 4‑2.5‑403
Retraction of anticipatory repudiation 4‑2.5‑404
Substituted performance 4‑2.5‑405
Excused performance 4‑2.5‑406
Procedure on excused performance 4‑2.5‑407
Irrevocable promises: Finance leases 4‑2.5‑501
Default: Procedure 4‑2.5‑502
Notice after default 4‑2.5‑503
Modification or impairment of rights and remedies 4‑2.5‑504
Liquidation of damages 4‑2.5‑505
Cancellation and termination and effect of cancellation, termination, rescission, or fraud on rights and remedies 4‑2.5‑506
Statute of limitations 4‑2.5‑507
Proof of market rent: time and place 4‑2.5‑508
Lessee’s remedies 4‑2.5‑509
Lessee’s rights on improper delivery 4‑2.5‑510
Installment lease contracts: rejection and default 4‑2.5‑511
Merchant lessee’s duties as to rightfully rejected goods 4‑2.5‑512
Lessee’s duties as to rightfully rejected goods 4‑2.5‑513
Cure by lessor of improper tender or delivery 4‑2.5‑514
Waiver of lessee’s objections 4‑2.5‑515
Acceptance of goods 4‑2.5‑516
Effect of acceptance of goods 4‑2.5‑517
Revocation of acceptance of goods 4‑2.5‑518
Cover 4‑2.5‑519
Lessee’s damages for nondelivery, repudiation, default and breach of warranty in regard to accepted goods 4‑2.5‑520
Lessee’s incidental and consequential damages 4‑2.5‑521
Lessee’s right to specific performance or replevin 4‑2.5‑522
Lessee’s right to goods on lessor’s insolvency 4‑2.5‑523
Lessor’s remedies 4‑2.5‑524
Lessor’s right to identify goods to lease contract 4‑2.5‑525
Lessor’s right to possession of goods 4‑2.5‑526
Lessor’s stoppage of delivery in transit or otherwise 4‑2.5‑527
Lessor’s rights to dispose of goods 4‑2.5‑528
Lessor’s damages for nonacceptance, failure to pay, repudiation, or other default 4‑2.5‑529
Lessor’s action for the rent 4‑2.5‑530
Lessor’s incidental damages 4‑2.5‑531
Standing to sue third parties for injury to goods 4‑2.5‑532
Lessor’s rights to residual interest 4‑2.5‑533
Other measures of damages
Green check means up to date. Up to date

Current through Fall 2024

§ 4-2.5-504’s source at colorado​.gov