• Current through October 23, 2012

(a) If the lessee receives notification of a material or indefinite delay or an allocation justified under § 28:2A-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 (§ 28:2A-510):

(1) Terminate the lease contract (§ 28:2A-505(b)); or

(2) Except in a finance lease that is not a consumer 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.

(b) If, after receipt of a notification from the lessor under § 28:2A-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.

(July 22, 1992, D.C. Law 9-128, § 2(b), 39 DCR 3830.)



Uniform Statutory Source

Section 2-616(1) and (2).


Revised to reflect leasing practices and terminology. Note that subsection 1(a) allows the lessee under a lease, including a finance lease, the right to terminate the lease for excused performance (Sections 2A-404 and 2A-405). However, subsection 1(b), which allows the lessee the right to modify the lease for excused performance, excludes a finance lease that is not a consumer lease. This exclusion is compelled by the same policy that led to codification of provisions with respect to irrevocable promises. Section 2A-407.

Definitional Cross References

"Consumer lease". Section 2A-103(1)(e).

"Delivery". Section 1-201(14).

"Finance lease". Section 2A-103(1)(g).

"Goods". Section 2A-103(1)(h).

"Installment lease contract". Section 2A-103(1)(i).

"Lease agreement". Section 2A-103(1)(k).

"Lease contract". Section 2A-103(1)(l).

"Lessee". Section 2A-103(1)(n).

"Lessor". Section 2A-103(1)(p).

"Notice". Section 1-201(25).

"Reasonable time". Section 1-204(1) and (2).

"Receipt". Section 2-103(1)(c).

"Rights". Section 1-201(36).

"Termination". Section 2A-103(1)(z).

"Value". Section 1-201(44).

"Written". Section 1-201(46).

Prior Codifications

1981 Ed., § 28:2A-406.

Legislative History of Laws

For legislative history of D.C. Law 9-128, see Historical and Statutory Notes following § 28:2A-101.