§ 336.2A-404 — Substituted Performance
Plain-Language Summary
If the agreed delivery method for leased goods becomes commercially impracticable through no one's fault (for example, the agreed loading facilities fail or the agreed type of carrier is unavailable), and a commercially reasonable substitute exists, that substitute must be offered and accepted. If the agreed means of payment fails because of a government regulation, the lessor may hold back delivery until the lessee provides a substantially equivalent way to pay. If delivery has already happened, paying in the way the regulation requires satisfies the lessee's obligation, unless that regulation is discriminatory, oppressive, or predatory.
336.2A-404 SUBSTITUTED PERFORMANCE.
(1) If without fault of the lessee, the lessor and the supplier, the agreed berthing, loading, or unloading facilities fail or the agreed type of carrier becomes unavailable or the agreed manner of delivery otherwise becomes commercially impracticable, but a commercially reasonable substitute is available, the substitute performance must be tendered and accepted.
(2) If the agreed means or manner of payment fails because of domestic or foreign governmental regulation:
(a) the lessor may withhold or stop delivery or cause the supplier to withhold or stop delivery unless the lessee provides a means or manner of payment that is commercially a substantial equivalent; and
(b) if delivery has already been taken, payment by the means or in the manner provided by the regulation discharges the lessee’s obligation unless the regulation is discriminatory, oppressive, or predatory.
History:
1989 c 232 art 1 s 2A-404
History: History: 1989 c 232 art 1 s 2A-404