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.
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