Virginia 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

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), ...

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

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

What is adequate assurance? The doctrine of adequate assurance allows a contract party with reasonable grounds to believe that its counterparty will be unable to perform, to demand that the counterparty provide ?adequate assurances? that the counterparty will perform its contractual obligations.

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.

More info

Your project is complete and certification is required for performance bond release. We hereby demand assurances that you will duly perform your obligations under the purchase and sale agreement notwithstanding [Describe Grounds – e.g., “the ...Indemnitor specifically waives all presentments, demand for performance, notice of non-performance, and notice of acceptance of this guarantee and indemnity. How to fill out Fairfax Virginia Notice Of Demand For Assurance Of Performance And An Indemnity Bond? ... fill it out electronically, sign it, and file where ... Adequate assurance of performance. (a) A contract imposes an obligation on each party not to impair the other's expectation of receiving due performance. If ... Notice should be sent by certified mail to the bonding company and perhaps to the owner of the project. This will help ensure that the prime contractor does ... 28.204-4 Contract clause.​​ Insert the clause at 52.228-14, Irrevocable Letter of Credit, in solicitations and contracts for services, supplies, or construction, ... Mar 1, 2016 — This report reviews key design and implementation issues and considerations relating to the use of financial assurances for mitigation project ... 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 ... Agreements to the extent that Transurban provides a guaranty, surety bond, letter of credit issued ... (ii) demand for performance, payment, presentment, protest ...

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