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Massachusetts Notice of Demand for Assurance of Performance and an Indemnity Bond

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Description

If a party to a contract has certain duties to perform under that contract and then transfers these duties to another person who is to perform them, there is a delegation of duties. Section 2-609 of the Uniform Commercial Code 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.


Between merchants the reasonableness of grounds for insecurity and the adequacy of any assurance offered shall be determined according to commercial standards.

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FAQ

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.

In order to preserve your contract rights?in particular where you have negotiated favorable terms?it is important that you: (1) respond quickly, (2) attack the grounds for any claimed need for "adequate assurances," (3) provide adequate assurances (but without creating new demands that ruin the economics of your deal), ...

An indemnity bond assures the holder of the bond, that they will be duly compensated in case of a possible loss. This bond is an agreement that protects the lender from loss if the borrower defaults on a legally binding loan.

(1) A contract for sale imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired.

Under UCC Section 2-609, a party to a contract has the right to demand adequate assurance of performance from a distressed counterparty. This demand usually takes the form of a letter known as a demand for adequate assurance letter.

Under UCC Section 2-609, a party to a contract has the right to demand adequate assurance of performance from a distressed counterparty. This demand usually takes the form of a letter known as a demand for adequate assurance letter.

- (a) Full name of the claimant referred to as the 'Obligor'. (b) State relationship of the Obligor to the deceased. (c) Name of the deceased Government Officer. (d) Full name or names of the Sureties with name or names of the father(s)/husband(s) and place of residence.

Comment: Under the Uniform Commercial Code (UCC), when a party to an agreement for the purchase or sale of goods has reasonable grounds to believe its counterparty will not perform as promised, the party may make a written demand for assurance of due performance from the counterparty.

More info

Information that must be included in the 30-Day Demand Letter · Your full name and address · The description of the unfair or deceptive act or practice including ... How to fill out Notice Demand Performance? ... Aren't you sick and tired of choosing from hundreds of templates every time you require to create a Notice of ...The indemnitors personally back and guarantee the performance of the principal with regard to the obligations it assumes in the GIA and as to various bonds ... We hereby demand assurances that you will duly perform your obligations under the purchase and sale agreement notwithstanding [Describe Grounds – e.g., “the ... (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 ... to the performance of either party the other may in writing demand adequate assurance of due performance and imtil he receives such assurance may if ... When is contractual performance excused? We have attempted to review all U.S. cases involving force majeure disputes and similar common law defenses to ... the court first stated that “purpose of a [public employees blanket bond] is to guarantee the honesty and faithful performance of the insured's employees by ... (b) Beginning requested performance without notice.--Where the beginning of a ... the insecure party may demand in writing adequate assurance of due performance. NOTICE: This opinion is subject to motions for rehearing under Rule 22 as well as formal revision before publication in the New Hampshire Reports.

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Massachusetts Notice of Demand for Assurance of Performance and an Indemnity Bond