Iowa Code 554.13405 – Excused performance
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Terms Used In Iowa Code 554.13405
- Contract: A legal written agreement that becomes binding when signed.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
554.13405 Excused performance.
Subject to § 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 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.
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 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.
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 delay
or nondelivery and, if allocation is required under subsection 2, of the estimated quota thus
made available for the lessee.
94 Acts, ch 1052, §50
Referred to in §554.13406
Subject to § 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 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.
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 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.
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 delay
or nondelivery and, if allocation is required under subsection 2, of the estimated quota thus
made available for the lessee.
94 Acts, ch 1052, §50
Referred to in §554.13406