§490:2-615 - Excuse by failure of presupposed conditions.
§490:2-615 Excuse by failure of presupposed
conditions. Except so far as a seller may have assumed a greater
obligation and subject to the preceding section on substituted performance:
(a) Delay in delivery or nondelivery in whole or in
part by a seller who complies with paragraphs (b) and (c) is not a breach of
his duty under a contract for sale 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 contract was made or by compliance in good
faith with any applicable foreign or domestic governmental regulation or order
whether or not it later proves to be invalid.
(b) Where the causes mentioned in paragraph (a)
affect only a part of the seller's capacity to perform, he must allocate
production and deliveries among his customers but may at his option include
regular customers not then under contract as well as his own requirements for
further manufacture. He may so allocate in any manner which is fair and reasonable.
(c) The seller must notify the buyer seasonably that
there will be delay or nondelivery and, when allocation is required under
paragraph (b), of the estimated quota thus made available for the buyer. [L
1965, c 208, §2-615; HRS §490:2-615]