C.R.S. Section 4-2.5-516
Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over

(1)

A lessee must pay rent for any goods accepted in accordance with the lease contract with due allowance for goods rightfully rejected or not delivered.

(2)

A lessee’s acceptance of goods precludes rejection of the goods accepted. In the case of a finance lease, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it. In any other case, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured. Acceptance does not of itself impair any other remedy provided by this article or the lease agreement for nonconformity.

(3)

If a tender has been accepted:

(a)

Within a reasonable time after the lessee discovers or should have discovered any default, the lessee shall notify the lessor and the supplier, if any, or be barred from any remedy against the party not notified;

(b)

Except in the case of a consumer lease, within a reasonable time after the lessee receives notice of litigation for infringement or the like (section 4-2.5-211) the lessee shall notify the lessor or be barred from any remedy over for liability established by the litigation; and

(c)

The burden is on the lessee to establish any default.

(4)

If a lessee is sued for breach of a warranty or other obligation for which a lessor or a supplier is answerable over the following apply:

(a)

The lessee may give the lessor or the supplier, or both, written notice of the litigation. If the notice states that the person notified may come in and defend and that if the person notified does not do so that person will be bound in any action against that person by the lessee by any determination of fact common to the two litigations, then unless the person notified after seasonable receipt of the notice does come in and defend that person is so bound.

(b)

The lessor or the supplier may demand in writing that the lessee turn over control of the litigation including settlement if the claim is one for infringement or the like (section 4-2.5-211) or else be barred from any remedy over. If the demand states that the lessor or the supplier agrees to bear all expense and to satisfy any adverse judgment, then unless the lessee after seasonable receipt of the demand does turn over control the lessee is so barred.

(5)

Subsections (3) and (4) of this section apply to any obligation of a lessee to hold the lessor or the supplier harmless against infringement or the like (section 4-2.5-211).

Source: Section 4-2.5-516 — Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over, 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

§ 4-2.5-516’s source at colorado​.gov