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HomeCommercial CodeDiv. 2Ch. 6§ 2614 Commercial Performance Substitutions

§ 2614 Commercial Performance Substitutions

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 2614 Commercial Performance Substitutions

If a promised way to dock, load, or unload a ship or deliver goods falls through, the parties must use a reasonable alternative that works, and if a law blocks the agreed way to pay, the seller can pause delivery unless the buyer can use a similar payment method.

Key Takeaways

  • •A broken promise must be replaced with a commercially reasonable alternative.
  • •If a government rule stops the agreed payment method, the seller can stop shipping until a similar payment method is offered.
  • •If payment is already made, it counts unless the rule is unfair or discriminatory.

Example

A company rents a warehouse dock to load trucks, but the dock collapses and can't be fixed quickly.

The company must find another dock that works just as well, and the other party must accept that new dock as the substitute.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 2614 Commercial Performance Substitutions

(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. (Enacted by Stats. 1963, Ch. 819.)

Last verified: January 10, 2026

Key Terms

commercially reasonable substitutegovernmental regulationsubstantial equivalentdiscriminatory

Related Statutes

  • § 10404 Substitute Performance Requirements
  • § 10600 Lease Contract Effective Dates
  • § 2601 Buyer Remedies For Nonconforming Goods
  • § 2602 Buyer Rejection Of Goods
  • § 2603 Buyer Duty After Rejection

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 2614.
View Official Source