N.Y. Uniform Commercial Code 2-A-404 – Substituted Performance
Section 2-A-404. Substituted Performance.
Terms Used In N.Y. Uniform Commercial Code 2-A-404
- Fault: means wrongful act, omission, breach, or default. See N.Y. Uniform Commercial Code 2-A-103
- Lessee: means a person who acquires the right to possession
and use of goods under a lease. See N.Y. Uniform Commercial Code 2-A-103 - Lessor: means a person who transfers the right to possession
and use of goods under a lease. See N.Y. Uniform Commercial Code 2-A-103 - 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.
- Supplier: means a person from whom a lessor buys or leases
goods to be leased under a finance lease. See N.Y. Uniform Commercial Code 2-A-103
(1) If without fault of the lessee, the lessor and the supplier, the agreed berthing, loading, or unloading facilities fail or the agreed type of carrier becomes unavailable or the agreed manner of delivery otherwise becomes commercially impracticable, but a commercially reasonable substitute is available, the substitute performance must be tendered and accepted.
(2) If the agreed means or manner of payment fails because of domestic or foreign governmental regulation:
(a) the lessor may withhold or stop delivery or cause the
supplier to withhold or stop delivery unless the lessee
provides a means or manner of payment that is commercially a
substantial equivalent; and
(b) if delivery has already been taken, payment by the means or
in the manner provided by the regulation discharges the
lessee's obligation unless the regulation is discriminatory,
oppressive, or predatory.