§ 4-2.5-406 — Procedure on excused performance

Colorado § 4-2.5-406

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

Text

(1) If the lessee receives
notification of a material or indefinite delay or an allocation justified under section
4-2.5-405, the lessee may by written notification to the lessor as to any goods
involved, and with respect to all of the goods if under an installment lease contract
the value of the whole lease contract is substantially impaired (section 4-2.5-510):

(a) Terminate the lease contract (section 4-2.5-505 (2)); or

(b) Except in a finance lease that is not a consumer lease, modify the lease
contract by accepting the available quota in substitution, with due allowance from
the rent payable for the balance of the lease term for the deficiency but without
further right against the lessor.

(2) If, after receipt of a notification from the lessor under section 4-2.5-405,
the lessee fails so to modify the lease agreement within a reasonable time not
exceeding thirty days, the lease contract lapses with respect to any deliveries
affected.

Legislative History

Source: L. 91: Entire article added, p. 299, � 1, effective July 1, 1992.