§ 26-1-2-609 — 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 (30) days such assurance of due
performance as is adequate under the circumstances of the particular
case is a repudiation of the contract.
Formerly: Acts 1963, c.317, s.2-609.