§ 4-2.5-508 — Lessee's remedies

Colorado § 4-2.5-508

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

Text

(1) If a lessor fails to deliver the goods in
conformity to the lease contract (section 4-2.5-509) or repudiates the lease
contract (section 4-2.5-402), or a lessee rightfully rejects the goods (section 4-2.5-509) or justifiably revokes acceptance of the goods (section 4-2.5-517), then with
respect 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), the lessor is in default under the lease contract and
the lessee may:

(a) Cancel the lease contract (section 4-2.5-505 (1));

(b) Recover so much of the rent and security as has been paid and is just
under the circumstances;

(c) Cover and recover damages as to all goods affected whether or not they
have been identified to the lease contract (sections 4-2.5-518 and 4-2.5-520), or
recover damages for nondelivery (sections 4-2.5-519 and 4-2.5-520);

(d) Exercise any other rights or pursue any other remedies provided in the
lease contract.

(2) If a lessor fails to deliver the goods in conformity to the lease contract or
repudiates the lease contract, the lessee may also:

(a) If the goods have been identified, recover them (section 4-2.5-522); or

(b) In a proper case, obtain specific performance or replevy the goods
(section 4-2.5-521).

(3) If a lessor is otherwise in default under a lease contract, the lessee may
exercise the rights and pursue the remedies provided in the lease contract, which
may include a right to cancel the lease, and in section 4-2.5-519 (3).

(4) If a lessor has breached a warranty, whether express or implied, the
lessee may recover damages (section 4-2.5-519 (4)).

(5) On rightful rejection or justifiable revocation of acceptance, a lessee has
a security interest in goods in the lessee's possession or control for any rent and
security that has been paid and any expenses reasonably incurred in their
inspection, receipt, transportation, and care and custody and may hold those goods
and dispose of them in good faith and in a commercially reasonable manner, subject
to section 4-2.5-527 (5).

(6) Subject to the provisions of section 4-2.5-407, a lessee, on notifying the
lessor of the lessee's intention to do so, may deduct all or any part of the damages
resulting from any default under the lease contract from any part of the rent still
due under the same lease contract.

Legislative History

Source: L. 91: Entire article added, p. 304, � 1, effective July 1, 1992.