Sec. 42a-2-609. Right to adequate assurance of performance.
Sec. 42a-2-609. Right to adequate assurance of performance. (1) A contract for
sale imposes an obligation on each party that the other's expectation of receiving due
performance will not be impaired. When reasonable grounds for insecurity arise with
respect to the performance of either party the other may in writing demand adequate
assurance of due performance and until he receives such assurance may if commercially
reasonable suspend any performance for which he has not already received the agreed
return.
(2) Between merchants the reasonableness of grounds for insecurity and the adequacy of any assurance offered shall be determined according to commercial standards.
(3) Acceptance of any improper delivery or payment does not prejudice the aggrieved party's right to demand adequate assurance of future performance.
(4) After receipt of a justified demand failure to provide within a reasonable time
not exceeding thirty days such assurance of due performance as is adequate under the
circumstances of the particular case is a repudiation of the contract.
(1959, P.A. 133, S. 2-609.)
Cited. 165 C. 300. Cited. 166 C. 280. It is possible that a seller may terminate a contract without first invoking the
insecurity methodology of this section. 180 C. 714. Analogy of this statute to real property transaction discussed. 189 C. 212.
Cited. 7 CA 318.