Iowa Code 554.2616 – Procedure on notice claiming excuse
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Terms Used In Iowa Code 554.2616
- Contract: A legal written agreement that becomes binding when signed.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
554.2616 Procedure on notice claiming excuse.
1. Where the buyer receives notification of a material or indefinite delay or an allocation justified under § 554.2615 the buyer may by written notification to the seller as to any delivery concerned, and where the prospective deficiency substantially impairs the value of the whole contract under the provisions of this Article relating to breach of installment contracts (section 554.2612), then also as to the whole,
a. terminate and thereby discharge any unexecuted portion of the contract; or
b. modify the contract by agreeing to take the buyer’s available quota in substitution.
2. If after receipt of such notification from the seller the buyer fails so to modify the contract within a reasonable time not exceeding thirty days the contract lapses with respect to any deliveries affected.
3. The provisions of this section may not be negated by agreement except insofar as the seller has assumed a greater obligation under § 554.2615.
[C66, 71, 73, 75, 77, 79, 81, §554.2616]
2008 Acts, ch 1032, §72
1. Where the buyer receives notification of a material or indefinite delay or an allocation justified under § 554.2615 the buyer may by written notification to the seller as to any delivery concerned, and where the prospective deficiency substantially impairs the value of the whole contract under the provisions of this Article relating to breach of installment contracts (section 554.2612), then also as to the whole,
a. terminate and thereby discharge any unexecuted portion of the contract; or
b. modify the contract by agreeing to take the buyer’s available quota in substitution.
2. If after receipt of such notification from the seller the buyer fails so to modify the contract within a reasonable time not exceeding thirty days the contract lapses with respect to any deliveries affected.
3. The provisions of this section may not be negated by agreement except insofar as the seller has assumed a greater obligation under § 554.2615.
[C66, 71, 73, 75, 77, 79, 81, §554.2616]
2008 Acts, ch 1032, §72