KRS 355.2-615: Excuse by failure of presupposed conditions.

Except so far as a seller may have assumed a greater obligation and subject to KRS

355.2-614 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 his d uty 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 foreig n or

domestic governmental regulation or order whether or not it later proves to be

invalid.

(b) Where the clauses mentioned in paragraph (a) affect only a part of the seller's

capacity to perform, he must allocate production and deliveries among his

customers but may at his option include regular customers not then under contract

as well as his own requirements for further manufacture. He may so allocate in any

manner which is fair and reasonable.

(c) The seller must notify the buyer seasonably that ther e will be delay or nondelivery

and, when allocation is required under paragraph (b), of the estimated quota thus

made available for the buyer.