§490:2-609  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. [L 1965, c 208, §2-609; HRS §490:2-609]



 



Case Notes



 



  Section applicable to some situations involving transactions
in land.  2 H. App. 597, 637 P.2d 1147.