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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

002A

:
Leases











 

§

2A-506. Statute of limitations

(1) An action

for default under a lease contract, including breach of warranty or indemnity,

must be commenced within four years after the cause of action accrued. By the

original lease contract the parties may reduce the period of limitation to not

less than one year.

(2) A cause of

action for default accrues when the act or omission on which the default or

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.

(3) If an action

commenced within the time limited by subsection (1) of this section is so

terminated 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 six months after the

termination of the first action unless the termination resulted from voluntary

discontinuance or from dismissal for failure or neglect to prosecute.

(4) This section

does not alter the law on tolling of the statute of limitations nor does it apply

to causes of action that have accrued before this article becomes effective.

(Added 1993, No. 158 (Adj. Sess.), § 10, eff. Jan. 1, 1995.)