                                 CODE OF VIRGINIA

EXCUSED PERFORMANCE (§ 8.2A-405)

Subject to § 8.2A-404 on substituted performance, the following rules apply:

a. Delay in delivery or nondelivery in whole or in part by a lessor or a
supplier who complies with subdivision (b) and (c) of this section is not a
default under the lease contract if performance as agreed has been made
impracticable by the occurrence of a contingency the non-occurrence 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 subdivision (a) of this section affect only part
of the lessor&#8217;s or the supplier&#8217;s capacity to perform, the lessor or
supplier shall allocate production and deliveries among his customers but at his
option may include regular customers not then under contract for sale or lease
as well as his own 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
subdivision (b) of this section, of the estimated quota thus made available for
the lessee.

HISTORY: 1991, c. 536.