400.2A-405. Excused performance. - Missouri Statutes

Excused performance.

400.2A-405. Subject to section 400.2A-404 on substitutedperformance, the following rules apply:

(a) Delay in delivery or nondelivery in whole or in part bya lessor or a supplier who complies with paragraphs (b) and (c)is not a default under the lease contract if performance asagreed has been made impracticable by the occurrence of acontingency the nonoccurrence of which was a basic assumption onwhich the lease contract was made or by compliance in good faithwith any applicable foreign or domestic governmental regulationor order, whether or not the regulation or order later proves tobe invalid.

(b) If the causes mentioned in paragraph (a) affect onlypart of the lessor's or the supplier's capacity to perform, heshall allocate production and deliveries among his customers butat his option may include regular customers not then undercontract for sale or lease as well as his own requirements forfurther manufacture. He may so allocate in any manner that isfair and reasonable.

(c) The lessor seasonably shall notify the lessee and inthe case of a finance lease the supplier seasonably shall notifythe lessor and the lessee, if known, that there will be delay ornondelivery and, if allocation is required under paragraph (b),of the estimated quota thus made available for the lessee.

(L. 1992 S.B. 448)