(1) Where the buyer receives notification of a material or indefinite delay or an allocation justified under the preceding section [55-2-615 NMSA 1978], he may by written notification to the seller as to any delivery concerned, and where the prospective deficiency substantially impairs the value of the whole contract under the provisions of this article relating to breach of installment contracts (Section 2-612 [55-2-612 NMSA 1978]), then also as to the whole:
(a) terminate and thereby discharge any unexecuted portion of the contract; or
(b) modify the contract by agreeing to take his available quota in substitution.
(2) If after receipt of such notification from the seller, the buyer fails so to modify the contract within a reasonable time not exceeding thirty days, the contract lapses with respect to any deliveries affected.
(3) The provisions of this section may not be negated by agreement except insofar as the seller has assumed a greater obligation under the preceding section [55-2-615 NMSA 1978].
History: 1953 Comp., § 50A-2-616, enacted by Laws 1961, ch. 96, § 2-616.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Prior uniform statutory provision. — None.
Purposes. — This section seeks to establish simple and workable machinery for providing certainty as to when a supervening and excusing contingency "excuses" the delay, "discharges" the contract, or may result in a waiver of the delay by the buyer. When the seller notifies, in accordance with the preceding section, claiming excuse, the buyer may acquiesce, in which case the contract is so modified. No consideration is necessary in a case of this kind to support such a modification. If the buyer does not elect so to modify the contract, he may terminate it and under Subsection (2) his silence after receiving the seller's claim of excuse operates as such a termination. Subsection (3) denies effect to any contract clause made in advance of trouble which would require the buyer to stand ready to take delivery whenever the seller is excused from delivery by unforeseen circumstances.
Cross references. — Point 1: Sections 2-209 and 2-615.
"Buyer". Section 2-103.
"Contract". Section 1-201.
"Installment contract". Section 2-612.
"Notification". Section 1-201.
"Reasonable time". Section 1-204.
"Seller". Section 2-103.
"Termination". Section 2-106.
"Written". Section 1-201.
Law reviews. — For comment, "Commercial Law - Uniform Commercial Code - Section 2-609: Right to Adequate Assurance of Performance," see 7 Nat. Resources J. 397 (1967).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 77A C.J.S. Sales § 121 et seq.
Structure New Mexico Statutes
Chapter 55 - Uniform Commercial Code
Part 6 - BREACH, REPUDIATION AND EXCUSE
Section 55-2-601 - Buyer's rights on improper delivery.
Section 55-2-602 - Manner and effect of rightful rejection.
Section 55-2-603 - Merchant buyer's duties as to rightfully rejected goods.
Section 55-2-604 - Buyer's options as to salvage of rightfully rejected goods.
Section 55-2-605 - Waiver of buyer's objections by failure to particularize.
Section 55-2-606 - What constitutes acceptance of goods.
Section 55-2-608 - Revocation of acceptance in whole or in part.
Section 55-2-609 - Right to adequate assurance of performance.
Section 55-2-610 - Anticipatory repudiation.
Section 55-2-611 - Retraction of anticipatory repudiation.
Section 55-2-612 - "Installment contract"; breach.
Section 55-2-613 - Casualty to identified goods.
Section 55-2-614 - Substituted performance.
Section 55-2-615 - Excuse by failure of presupposed conditions.