New Jersey Statutes 12A:2A-405. Excused performance
Terms Used In New Jersey Statutes 12A:2A-405
- Contract: A legal written agreement that becomes binding when signed.
- Finance lease: means a lease with respect to which:
(i) the lessor does not select, manufacture, or supply the goods. See New Jersey Statutes 12A:2A-103 - 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 New Jersey Statutes 12A: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
- Lessee: means a person who acquires the right to possession and use of goods under a lease. See New Jersey Statutes 12A:2A-103
- Lessor: means a person who transfers the right to possession and use of goods under a lease. See New Jersey Statutes 12A:2A-103
- Supplier: means a person from whom a lessor buys or leases goods to be leased under a finance lease. See New Jersey Statutes 12A:2A-103
Subject to 12A:2A-404 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.
L.1994,c.114,s.1.