70A-2a-405 - Excused performance.
70A-2a-405. Excused performance.
Subject to Section 70A-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 whocomplies with Subsections (2) and (3) is not a default under the lease contract if performance asagreed has been made impracticable by the occurrence of a contingency the nonoccurrence ofwhich was a basic assumption on which the lease contract was made or by compliance in goodfaith with any applicable foreign or domestic governmental regulation or order, whether or not theregulation or order later proves to be invalid.
(2) If the causes mentioned in Subsection (1) affect only part of the lessor's or thesupplier'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 wellas his own requirements for further manufacture. He may so allocate in any manner that is fairand reasonable.
(3) The lessor seasonably shall notify the lessee, and in the case of a finance lease, thesupplier seasonably shall notify the lessor and the lessee, if known, that there will be delay ornondelivery and, if allocation is required under Subsection (2), of the estimated quota thus madeavailable for the lessee.
Enacted by Chapter 197, 1990 General Session