§ 4-2.5-219 — Risk of loss

Colorado § 4-2.5-219

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Leases

Text

(1) Except in the case of a finance lease, risk of loss
is retained by the lessor and does not pass to the lessee. In the case of a finance
lease, risk of loss passes to the lessee.

(2) Subject to the provisions of this article on the effect of default on risk of
loss (section 4-2.5-220), if risk of loss is to pass to the lessee and the time of
passage is not stated, the following rules apply:

(a) If the lease contract requires or authorizes the goods to be shipped by
carrier

(i) and it does not require delivery at a particular destination, the risk of loss
passes to the lessee when the goods are duly delivered to the carrier; but

(ii) if it does require delivery at a particular destination and the goods are
there duly tendered while in the possession of the carrier, the risk of loss passes to
the lessee when the goods are there duly so tendered as to enable the lessee to
take delivery.

(b) If the goods are held by a bailee to be delivered without being moved, the
risk of loss passes to the lessee on acknowledgment by the bailee of the lessee's
right to possession of the goods.

(c) In any case not within paragraph (a) or (b) of this subsection (2), the risk of
loss passes to the lessee on the lessee's receipt of the goods if the lessor, or, in the
case of a finance lease, the supplier, is a merchant; otherwise the risk passes to the
lessee on tender of delivery.

Legislative History

Source: L. 91: Entire article added, p. 287, � 1, effective July 1, 1992.