South Dakota Codified Laws 57A-2-615. Excuse by failure of presupposed conditions
Except so far as a seller may have assumed a greater obligation and subject to § 57A-2-614 on substituted performance;
(a) Delay in delivery or nondelivery in whole or in part by a seller who complies with paragraphs (b) and (c) is not a breach of his duty under a contract for sale 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 contract was made or by compliance in good faith with any applicable foreign or domestic governmental regulation or order whether or not it later proves to be invalid.
Terms Used In South Dakota Codified Laws 57A-2-615
- Buyer: means a person who buys or contracts to buy goods. See South Dakota Codified Laws 57A-2-103
- 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.
- Seller: means a person who sells or contracts to sell goods. See South Dakota Codified Laws 57A-2-103
(b) Where the causes mentioned in paragraph (a) affect only a part of the seller’s capacity to perform, he must allocate production and deliveries among his customers but may at his option include regular customers not then under contract as well as his own requirements for further manufacture. He may so allocate in any manner which is fair and reasonable.
(c) The seller must notify the buyer seasonably that there will be delay or nondelivery and, when allocation is required under paragraph (b), of the estimated quota thus made available for the buyer.
Source: SL 1966, ch 150, § 2-615; SDCL, §§ 57-7-37 to 57-7-39.