(2A-405) Excused performance
N.D. Cent. Code § 41-02.1-46
in effect41-02.1-46. (2A-405) Excused performance
Subject to section 41-02.1-45 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, regardless of whether 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 its customers but at its option may include regular customers not then under
contract for sale or lease as well as its 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
quote thus made available for the lessee.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c02-1.pdf#nameddest=41-02p1-46Fetched: 10/16/2026