§ 4-2-609 — 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.

Legislative History

Source: L. 65: p. 1331, � 1. C.R.S. 1963: � 155-2-609.