47-2A405. Excused performance
Subject to section 47-2A404 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 of this section 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 of this section affect only part of the lessor's or the supplier's capacity to perform, he shall allocate production and deliveries among his customers but at his option may include regular customers not then under contract for sale or lease as well as his own requirements for further manufacture. He 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 this section, of the estimated quota thus made available for the lessee.
Section: Previous 47-2a309 47-2a310 47-2a311 47-2a401 47-2a402 47-2a403 47-2a404 47-2a405 47-2a406 47-2a407 47-2a501 47-2a502 47-2a503 47-2a504 47-2a505 NextLast modified: October 13, 2016