Section 2--609. Right to Adequate Assurance of Performance  


Latest version.
  • (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.