§ 336.2A-406 — Procedure on Excused Performance
Plain-Language Summary
When the lessor notifies the lessee of a material or indefinite delay, or of an allocation justified under section 336.2A-405, the lessee may respond by written notice. The lessee can either terminate the lease, or (except in a finance lease) accept the available reduced quota in substitution, with a fair allowance off the rent for the shortfall and no further claim against the lessor. If the lessee does not modify the agreement within a reasonable time not exceeding 30 days after the lessor's notice, the lease lapses for the affected deliveries.
336.2A-406 PROCEDURE ON EXCUSED PERFORMANCE.
(1) If the lessee receives notification of a material or indefinite delay or an allocation justified under section 336.2A-405, the lessee may by written notification to the lessor as to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (section 336.2A-510):
(a) terminate the lease contract (section 336.2A-505(2)); or
(b) except in a finance lease, modify the lease contract by accepting the available quota in substitution, with due allowance from the rent payable for the balance of the lease term for the deficiency but without further right against the lessor.
(2) If, after receipt of a notification from the lessor under section 336.2A-405, the lessee fails so to modify the lease agreement within a reasonable time not exceeding 30 days, the lease contract lapses with respect to any deliveries affected.
History:
1989 c 232 art 1 s 2A-406
History: History: 1989 c 232 art 1 s 2A-406