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Adequate Assurance

Learn about special rules that apply if reasonable grounds for insecurity arise, short of an anticipatory repudiation, as to one party’s performance that is not yet due.


As we discussed in another lesson, an anticipatory repudiation is a breach that occurs before the actual time for performance. Unfortunately, it’s not always easy to determine whether an anticipatory repudiation has occurred. To reduce this uncertainty, Article 2 allows an insecure party to confirm another party’s repudiation by requesting assurance of performance.

I. Adequate Assurance Generally

Under Article 2, if one party has reasonable grounds for insecurity regarding the other party’s...