§ 25-2-615. Excuse by failure of presupposed conditions. - North Carolina Statutes

§25‑2‑615.  Excuse by failure of presupposed conditions.

Except so far as a seller mayhave assumed a greater obligation and subject to the preceding section [G.S. 25‑2‑614]on substituted performance:

(a)        Delay in delivery ornondelivery 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 asagreed has been made impracticable by the occurrence of a contingency thenonoccurrence of which was a basic assumption on which the contract was made orby compliance in good faith with any applicable foreign or domesticgovernmental regulation or order whether or not it later proves to be invalid.

(b)        Where the causesmentioned in paragraph (a) affect only a part of the seller's capacity toperform, he must allocate production and deliveries among his customers but mayat his option include regular customers not then under contract as well as hisown requirements for further manufacture. He may so allocate in any mannerwhich is fair and reasonable.

(c)        The seller mustnotify the buyer seasonably that there will be  delay or nondelivery and, whenallocation is required under paragraph (b), of the estimated quota thus madeavailable for the buyer. (1965, c. 700, s. 1.)