(810 ILCS 5/Art. 2A Pt. 4 heading) PART 4.
PERFORMANCE OF LEASE CONTRACT:
REPUDIATED, SUBSTITUTED, AND EXCUSED
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(810 ILCS 5/2A-401) (from Ch. 26, par. 2A-401)
Sec. 2A-401.
Insecurity; adequate assurance of
performance.
(1) A lease contract imposes an obligation on each party
that the other's expectation of receiving due performance will not
be impaired.
(2) If reasonable grounds for insecurity arise with
respect to the performance of either party, the insecure party
may demand in writing adequate assurance of due performance.
Until the insecure party receives that assurance, if commercially
reasonable the insecure party may suspend any performance for
which he or she has not already received the agreed return.
(3) A repudiation of the lease contract occurs if
assurance of due performance adequate under the circumstances
of the particular case is not provided to the insecure party
within a reasonable time, not to exceed 30 days after receipt of
a demand by the other party.
(4) Between merchants, the reasonableness of grounds for
insecurity and the adequacy of any assurance offered must be
determined according to commercial standards.
(5) Acceptance of any nonconforming delivery or payment
does not prejudice the aggrieved party's right to demand
adequate assurance of future performance.
(Source: P.A. 87-493.)
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(810 ILCS 5/2A-402) (from Ch. 26, par. 2A-402)
Sec. 2A-402.
Anticipatory repudiation.
If either party repudiates a lease contract with respect to a
performance not yet due under the lease contract, the loss of
which performance will substantially impair the value of the lease
contract to the other, the aggrieved party may:
(a) for a commercially reasonable time, await retraction of
repudiation and performance by the repudiating party;
(b) make demand pursuant to Section 2A-401 and await
assurance of future performance adequate under the
circumstances of the particular case; or
(c) resort to any right or remedy upon default under the
lease contract or this Article, even though the aggrieved party
has notified the repudiating party that the aggrieved party
would await the repudiating party's performance and assurance
and has urged retraction. In addition, whether or not the
aggrieved party is pursuing one of the foregoing remedies, the
aggrieved party may suspend performance or, if the aggrieved
party is the lessor, proceed in accordance with the provisions of
this Article on the lessor's right to identify goods to the lease
contract notwithstanding default or to salvage unfinished goods
(Section 2A-524).
(Source: P.A. 87-493.)
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(810 ILCS 5/2A-403) (from Ch. 26, par. 2A-403)
Sec. 2A-403.
Retraction of anticipatory repudiation.
(1) Until the repudiating party's next performance is
due, the repudiating party can retract the repudiation unless,
since the repudiation, the aggrieved party has cancelled the
lease contract or materially changed the aggrieved party's
position or otherwise indicated that the aggrieved party
considers the repudiation final.
(2) Retraction may be by any method that clearly
indicates to the aggrieved party that the repudiating party
intends to perform under the lease contract and includes any
assurance demanded under Section 2A-401.
(3) Retraction reinstates a repudiating party's rights
under a lease contract with due excuse and allowance to the
aggrieved party for any delay occasioned by the repudiation.
(Source: P.A. 87-493.)
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(810 ILCS 5/2A-404) (from Ch. 26, par. 2A-404)
Sec. 2A-404.
Substituted performance.
(1) If without fault of the lessee, the lessor and the
supplier, the agreed berthing, loading, or unloading facilities
fail or the agreed type of carrier becomes unavailable or the
agreed manner of delivery otherwise becomes commercially
impracticable, but a commercially reasonable substitute is
available, the substitute performance must be tendered and
accepted.
(2) If the agreed means or manner of payment fails
because of domestic or foreign governmental regulation:
(a) the lessor may withhold or stop delivery or cause | ||
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(b) if delivery has already been taken, payment by | ||
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(Source: P.A. 87-493.)
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(810 ILCS 5/2A-405) (from Ch. 26, par. 2A-405)
Sec. 2A-405.
Excused performance.
Subject to Section 2A-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 paragraphs (b) and
(c) 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.
(c) 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 paragraph (b),
of the estimated quota thus made available for the lessee.
(Source: P.A. 87-493.)
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(810 ILCS 5/2A-406) (from Ch. 26, par. 2A-406)
Sec. 2A-406.
Procedure on excused performance.
(1) If the lessee receives notification of a material or
indefinite delay or an allocation justified under Section 2A-405,
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 2A-510):
(a) terminate the lease contract (Section 2A-505(2)); | ||
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(b) except in a finance lease that is not a consumer | ||
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(2) If, after receipt of a notification from the lessor
under Section 2A-405, the lessee fails so to modify the lease
agreement within a reasonable time not exceeding 30 days, the
lease contract lapses with respect to any deliveries affected.
(Source: P.A. 87-493.)
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(810 ILCS 5/2A-407) (from Ch. 26, par. 2A-407)
Sec. 2A-407.
Irrevocable promises; finance leases.
(1) In the case of a finance lease that is not a consumer
lease the lessee's promises under the lease contract become
irrevocable and independent upon the lessee's acceptance of the
goods.
(2) A promise that has become irrevocable and
independent under subsection (1):
(a) is effective and enforceable between the parties, | ||
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(b) is not subject to cancellation, termination, | ||
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(3) This Section does not affect the validity under any other law of a
covenant in any lease contract making the lessee's promises irrevocable
and independent upon the lessee's acceptance of the goods.
(Source: P.A. 87-493.)
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