§ 4-2-615 — Excuse by failure of presupposed conditions

Except so far as a
seller may have assumed a greater obligation and subject to section 4-2-614 on
substituted performance:

(a) Delay in delivery or nondelivery in whole or in part by a seller who
complies with paragraphs (b) and (c) of this section 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) of this section 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 a delay or
nondelivery and, when allocation is required under paragraph (b) of this section, of
the estimated quota thus made available for the buyer.

Legislative History

Source: L. 65: p. 1333, � 1. C.R.S. 1963: � 155-2-615.