New York Laws
Part 4 - Performance of Lease Contract: Repudiated, Substituted and Excused
2-A-405 - Excused Performance.

(1) Subject to Section 2-A-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 paragraph (b) and
subsection (2) 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.
(b) if the causes mentioned in paragraph (a) affect only part of
the lessor's or the supplier's capacity to perform, he or she
shall allocate production and deliveries among his or her
customers but at his or her option may include regular
customers not then under contract for sale or lease as well
as his or her own requirements for further manufacture. He or
she may so allocate in any manner that is fair and
reasonable.
(2) 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 (1) (b), of the estimated quota
thus made available for the lessee.

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