70A-2a-406 - Procedure on excused performance.
70A-2a-406. Procedure on excused performance.
(1) If the lessee receives notification of a material or indefinite delay or an allocationjustified under Section 70A-2a-405, the lessee may by written notification to the lessor as to anygoods involved, and with respect to all of the goods if under an installment lease contract thevalue of the whole lease contract is substantially impaired as provided in Section 70A-2a-510:
(a) terminate the lease contract as provided in Subsection 70A-2a-505(2); or
(b) except in a finance lease, modify the lease contract by accepting the available quotain substitution, with due allowance from the rent payable for the balance of the lease term for thedeficiency but without further right against the lessor.
(2) If, after receipt of a notification from the lessor under Section 70A-2a-405, the lesseefails so to modify the lease agreement within a reasonable time not exceeding 30 days, the leasecontract lapses with respect to any deliveries affected.
Enacted by Chapter 197, 1990 General Session