8.2A-405 - A-405. Excused performance. - Virginia Statutes

§ 8.2A-405. Excused performance.

Subject to § 8.2A-404 on substituted performance, the following rules apply:

(a) Delay in delivery or nondelivery in whole or in part by a lessor or asupplier who complies with subdivision (b) and (c) of this section is not adefault under the lease contract if performance as agreed has been madeimpracticable by the occurrence of a contingency the non-occurrence of whichwas a basic assumption on which the lease contract was made or by compliancein good faith with any applicable foreign or domestic governmental regulationor order, whether or not the regulation or order later proves to be invalid.

(b) If the causes mentioned in subdivision (a) of this section affect onlypart of the lessor's or the supplier's capacity to perform, the lessor orsupplier shall allocate production and deliveries among his customers but athis option may include regular customers not then under contract for sale orlease as well as his own requirements for further manufacture. The lessor orsupplier may so allocate in any manner that is fair and reasonable.

(c) The lessor seasonably shall notify the lessee and in the case of afinance lease the supplier seasonably shall notify the lessor and the lessee,if known, that there will be delay or nondelivery and, if allocation isrequired under subdivision (b) of this section, of the estimated quota thusmade available for the lessee.

(1991, c. 536.)