California Commercial Code

§ 10406

COM § 10406 Effective Jul 15, 1991Div. 10 · Ch. 4

Statute text

(a)If the lessee receives notification of a material or indefinite delay or an allocation justified under Section 10405, the lessee may by written notification to the lessor as to any goods involved, and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (Section 10510):

(1)Terminate the lease contract (subdivision (b) of Section 10505); or

(2)Except in a finance lease, modify the lease contract by accepting the available quota in substitution, with due allowance from the rent payable for the balance of the lease term for the deficiency but without further right against the lessor.

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Legislative history

Amended by Stats. 1991, Ch. 111, Sec. 38. Effective July 15, 1991.