47-2609. Right to adequate assurance of
performance
A. 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.
B. Between merchants the reasonableness of grounds for insecurity and the adequacy
of any assurance offered shall be determined according to commercial standards.
C. Acceptance of any improper delivery or payment does not prejudice the aggrieved
party's right to demand adequate assurance of future performance.
D. 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.
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