§490:2A-405 Excused performance. Subject to section 490:2A-404 on substituted performance, the following rules apply:
(1) Delay in delivery or nondelivery in whole or in part by a lessor or a supplier who complies with paragraphs (2) and (3) is not a default under the lease contract if performance as agreed has been made impracticable by the occurrence of a contingency the nonoccurrence of which was a basic assumption on which the lease contract was made or by compliance in good faith with any applicable foreign or domestic governmental regulation or order, whether or not the regulation or order later proves to be invalid.
(2) If the causes mentioned in paragraph (1) affect only part of the lessor's or the supplier's capacity to perform, the lessor or the supplier shall allocate production and deliveries among the lessor's or the supplier's customers but at the lessor's or the supplier's option may include regular customers not then under contract for sale or lease as well as the lessor's or supplier's own requirements for further manufacture. The lessor or supplier may so allocate in any manner that is fair and reasonable.
(3) The lessor seasonably shall notify the lessee and in the case of a finance lease the supplier seasonably shall notify the lessor and the lessee, if known, that there will be delay or nondelivery and, if allocation is required under paragraph (2), of the estimated quota thus made available for the lessee. [L 1991, c 40, pt of §1]
Section: Previous 490-2a-309 490-2a-310 490-2a-311 490-2a-401 490-2a-402 490-2a-403 490-2a-404 490-2a-405 490-2a-406 490-2a-407 490-2a-501 490-2a-502 490-2a-503 490-2a-504 490-2a-505 NextLast modified: October 27, 2016