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Except so far as a seller may have assumed a greater obligation and subject to the preceding
section on substituted performance:
(a) Delay in delivery or nondelivery in whole or in part by a seller who complies with
paragraphs (b) and (c) is not a breach of duty under a contract for sale 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 contract was made or by compliance in good faith with any
applicable foreign or domestic governmental regulation or order whether or not it later proves to
be invalid.
(b) Where the causes mentioned in paragraph (a) affect only a part of the seller's capacity to
perform, the seller must allocate production and deliveries among the seller's customers but may
include regular customers not then under contract as well as the seller's own requirements for
further manufacture. The seller may so allocate in any manner which is fair and reasonable.
(c) The seller must notify the buyer seasonably that there will be delay or nondelivery and,
when allocation is required under paragraph (b), of the estimated quota thus made available for
the buyer.
History: 1965 c 811 s 336.2-615; 1986 c 444