§ 4-2.5-405 — Excused performance

Colorado § 4-2.5-405

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Leases

Text

Subject to section 4-2.5-404 on
substituted performance, the following rules apply:

(a) Delay in delivery or nondelivery in whole or in part by lessor or a supplier
who complies with paragraphs (b) and (c) is not a default under the lease contract 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 lease
contract was made or by compliance in good faith with any applicable foreign or
domestic governmental regulation or order, whether or not the regulation or order
later proves to be invalid.

(b) If the causes mentioned in paragraph (a) affect only part of the lessor's or
the supplier's capacity to perform, he or she shall allocate production and deliveries
among his or her customers but at his or her option may include regular customers
not then under contract for sale or lease as well as his or her own requirements for
further manufacture. He or she may so allocate in any manner that is fair and
reasonable.

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

Legislative History

Source: L. 91: Entire article added, p. 299, � 1, effective July 1, 1992.