Minnesota Statutes 336.2A-405 – Excused Performance
Subject to section 336.2A-404 on substituted performance, the following rules apply:
Terms Used In Minnesota Statutes 336.2A-405
- Contract: A legal written agreement that becomes binding when signed.
- Finance lease: means a lease in which
(1) the lessor does not select, manufacture, or supply the goods,
(2) the lessor acquires the goods or the right to possession and use of the goods in connection with the lease, and
(3) either
(i) the lessee receives a copy of the contract evidencing the lessor's purchase of the goods or a disclaimer statement on or before signing the lease contract, or
(ii) the lessee's approval of the contract evidencing the lessor's purchase of the goods or a disclaimer statement is a condition to effectiveness of the lease contract. See Minnesota Statutes 336.2A-103
- 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
- Lease: means a transfer of the right to possession and use of goods for a term in return for consideration, but a sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. See Minnesota Statutes 336.2A-103
- Lessee: means a person who acquires the right to possession and use of goods under a lease. See Minnesota Statutes 336.2A-103
- Lessor: means a person who transfers the right to possession and use of goods under a lease. See Minnesota Statutes 336.2A-103
- Supplier: means a person from whom a lessor buys or leases goods to be leased under a finance lease. See Minnesota Statutes 336.2A-103
(a) Delay in delivery or nondelivery in whole or in part by a lessor or a supplier who complies with paragraphs (b) and (c) 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.
(b) If the causes mentioned in paragraph (a) 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 may include regular customers not then under contract for sale or lease as well as other requirements for further manufacture. The lessor or supplier may so allocate in any manner that is fair and reasonable.
(c) 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 paragraph (b), of the estimated quota made available for the lessee.