§ 26-1-2.1-405 — Excused performance

Indiana § 26-1-2.1-405

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 2.1: Leases

Text

Subject to IC 26-1-2.1-404 on substituted
performance, the following rules apply:
(a) Delay in delivery or nondelivery in whole or in part by a lessor
or a supplier who complies with subdivisions (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 subdivision (a) affect only part of
the lessor's or the supplier's capacity to perform, the lessor or
supplier shall allocate production and deliveries among the
lessor's or supplier's customers but at the lessor's or supplier's
option may include regular customers not then under contract for
sale or lease as well as the lessor's or supplier's own requirements
for further manufacture. The lessor or supplier 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 subdivision (b), of the estimated
quota thus made available for the lessee.

Legislative History

As added by P.L.189-1991, SEC.3.