Utah Notice of Objection Regarding Late Performance in Delivery of Goods and Demand Assurance

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US-02310BG
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Description

Section 2-609(1) of the Uniform Commercial Code provides:


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.

How to fill out Notice Of Objection Regarding Late Performance In Delivery Of Goods And Demand Assurance?

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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.

If the counterparty fails to provide adequate assurance, the demanding party may treat this as a repudiation and terminate the contract.

Generally, as long as the seller can show that the buyer had a clear understanding that performance would be suspended until adequate assurance was received, then the written requirement under the UCC should be satisfied. Oral demands for assurance have also been considered acceptable in certain circumstances.

When one party informs another party that performance will not be given in advance of contract deadlines: An anticipatory repudiation has occurred.

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.

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Utah Notice of Objection Regarding Late Performance in Delivery of Goods and Demand Assurance