In the weeks since the COVID-19 outbreak took hold in the United States, it’s clear that the supply chain in many markets has been massively disrupted. With broad government restrictions impacting onsite business operations, workers becoming sick, factories closing, or even considering shuttering, contracts for the sale of goods are far more complicated than they were just weeks ago.
In Illinois, both buyers and sellers must begin to ask, how does the Illinois Commercial Code (the ICC) affect me in all of this?
Fortunately, there is an answer. In short, the ICC says that a seller has not breached a contract for the sale of goods due to a delay in delivery or non-delivery of goods, if:
Sellers can look at Section 2-615 of the ICC, “Excuse by Failure of Presupposed Conditions.”
What does this mean for the seller?
Sellers, in order to avoid legal exposure for your non-performance, you have to follow additional requirements.
This all seems fine and well for the seller, but what about the buyer?
Buyers, Section 2-616 protects you.
If you receive a Section 2-615 notice from a seller, you have two options:
However, if the buyer does not act within 30 days, the contract lapses with respect to any affected deliveries. In other words, the buyer needs to be careful and respond in compliance with the ICC.
For more resources and LP's response to COVID-19, visit this webpage.