400.2A-406. Procedure on excused performance. - Missouri Statutes

Procedure on excused performance.

400.2A-406. (1) If the lessee receives notification of amaterial or indefinite delay or an allocation justified undersection 400.2A-405, the lessee may by written notification to thelessor as to any goods involved, and with respect to all of thegoods if under an installment lease contract the value of thewhole lease contract is substantially impaired (Section400.2A-510):

(a) terminate the lease contract (Section 400.2A-505(2));or

(b) except in a finance lease, modify the lease contract byaccepting the available quota in substitution, with due allowancefrom 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 lessorunder section 400.2A-405, the lessee fails so to modify the leaseagreement within a reasonable time not exceeding thirty days, thelease contract lapses with respect to any deliveries affected.

(L. 1992 S.B. 448)