554.13405 Excused performance. Subject to section 554.13404 on substituted performance, the following rules apply:1. Delay in delivery or nondelivery in whole or in part by a lessor or a supplier who complies with subsections 2 and 3 is not a default under the lease contract if performance asagreed has been made impracticable by the occurrence of a contingency the nonoccurrenceof which was a basic assumption on which the lease contract was made or by compliancein good faith with any applicable foreign or domestic governmental regulation or order,whether or not the regulation or order later proves to be invalid. 2. If the causes mentioned in subsection 1 affect only part of the lessor’s or the supplier’s capacity to perform, the lessor or supplier shall allocate production and deliveries among thelessor’s or supplier’s customers but at the lessor’s or supplier’s option may include regularcustomers not then under contract for sale or lease as well as the lessor’s or supplier’s ownrequirements for further manufacture. The lessor or supplier may so allocate in any mannerthat is fair and reasonable. 3. hen under contract for sale or lease as well as the lessor’s or supplier’s ownrequirements for further manufacture. The lessor or supplier may so allocate in any mannerthat is fair and reasonable. 3. 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 delayor nondelivery and, if allocation is required under subsection 2, of the estimated quota thusmade available for the lessee. 94 Acts, ch 1052, §50Referred to in §554.13406 Sat Dec 23 11:03:23 2023 Iowa Code 2024, Section 554.13405 (25, 0)
Iowa Legal Code