(1) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within the time period prescribed in section 13-80-101, C.R.S. This period of limitation may not be varied by agreement of the parties.
A cause of action for default accrues when the act or omission on which the defaultor breach of warranty is based is or should have been discovered by the aggrieved party, or when the default occurs, whichever is later. A cause of action for indemnity accrues when the act or omission on which the claim for indemnity is based is or should have been discovered by the indemnified party, whichever is later.
If an action commenced within the time limited by subsection (1) of this section is soterminated as to leave available a remedy by another action for the same default or breach of warranty or indemnity, the other action may be commenced after the expiration of the time limited and within 6 months after the termination of the first action unless the termination resulted from voluntary discontinuance or from dismissal for failure or neglect to prosecute.
This section does not alter the law on tolling of the statute of limitations nor does itapply to causes of action that have accrued before this article becomes effective.
Source: L. 91: Entire article added, p. 303, § 1, effective July 1, 1992.
Editor's note - Colorado legislative change: In the first sentence of subsection (1) of this section, after the words "must be commenced within", Colorado deleted the words "4 years after the cause of action accrued." and substituted the words "the time period prescribed in section 13-80-101, C.R.S.". Colorado deleted the second sentence (which read: "By the original lease contract the parties may reduce the period of limitation to not less than one year.") and substituted the following sentence: "This period of limitation may not be varied by agreement of the parties.". These changes parallel the changes that Colorado had previously made to section 42-725 (1).