Substituted Performance

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Sales
  5. Breach, Repudiation, and Excuse
  6. Substituted Performance

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  1. Where without fault of either party the agreed berthing, loading, or unloading facilities fail or an agreed type of carrier becomes unavailable or the agreed manner of delivery otherwise becomes commercially impracticable but a commercially reasonable substitute is available, such substitute performance must be tendered and accepted.
  2. If the agreed means or manner of payment fails because of domestic or foreign governmental regulation, the seller may withhold or stop delivery unless the buyer provides a means or manner of payment which is commercially a substantial equivalent. If delivery has already been taken, payment by the means or in the manner provided by the regulation discharges the buyer's obligation unless the regulation is discriminatory, oppressive, or predatory.

(Code 1933, § 109A-2 - 614, enacted by Ga. L. 1962, p. 156, § 1.)

Law reviews.

- For article, "Impracticability As Risk Allocation: The Effect of Changed Circumstances upon Contract Obligations for the Sale of Goods," see 22 Ga. L. Rev. 503 (1988).

JUDICIAL DECISIONS

Government regulations rendering performance impossible.

- Contractual duty generally excused when government regulations subsequent to making of contract render performance impossible. R.C. Craig, Ltd. v. Ships of Sea, Inc., 345 F. Supp. 1066 (S.D. Ga. 1972), later proceeding, 401 F. Supp. 1051 (S.D. Ga. 1975).

O.C.G.A. § 11-2-614 deals with instances in international trade where buyer cannot make payment in seller's currency as a result of governmental regulation. R.C. Craig, Ltd. v. Ships of Sea, Inc., 345 F. Supp. 1066 (S.D. Ga. 1972), later proceeding, 401 F. Supp. 1051 (S.D. Ga. 1975).

RESEARCH REFERENCES

Am. Jur. 2d.

- 67 Am. Jur. 2d, Sales, §§ 588-590.

6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:623.

C.J.S.

- 77A C.J.S., Sales, §§ 208, 209.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 2-614.


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