§ 41-02-72 — (2-609) Right to adequate assurance of performance

North Dakota § 41-02-72

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-02: Sales

Text

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 party may in
writing demand adequate assurance of due performance and until the demanding
party receives such assurance may if commercially reasonable suspend any
performance for which the demanding party 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.