§ 6A-2.1-405 - Excused performance.
SECTION 6A-2.1-405
§ 6A-2.1-405 Excused performance. –Subject to § 6A-2.1-404 on substituted performance, the following rulesapply:
(a) Delay in delivery or nondelivery in whole or in part by alessor or a supplier who complies with subdivisions (b) and (c) is not adefault under the lease contract if performance as agreed has been madeimpracticable by the occurrence of a contingency the nonoccurrence of which wasa basic assumption on which the lease contract was made or by compliance ingood faith with any applicable foreign or domestic governmental regulation ororder, whether or not the regulation or order later proves to be invalid.
(b) If the causes mentioned in subdivision (a) affect onlypart of the lessor's or the supplier's capacity to perform, he or she shallallocate production and deliveries among his or her customers but at his or heroption may include regular customers not then under contract for sale or leaseas well as his or her own requirements for further manufacture. He or she mayso allocate in any manner that is fair and reasonable.
(c) The lessor seasonably shall notify the lessee and in thecase of a finance lease the supplier seasonably shall notify the lessor and thelessee, if known, that there will be delay or nondelivery and, if allocation isrequired under subdivision (b), of the estimated quota thus made available forthe lessee.