§ 6A-2.1-401 - Insecurity: Adequate assurance of performance. - Rhode Island Statutes

SECTION 6A-2.1-401

   § 6A-2.1-401  Insecurity: Adequateassurance of performance. – (1) A lease contract imposes an obligation on each party that the other'sexpectation of receiving due performance will not be impaired.

   (2) If reasonable grounds for insecurity arise with respectto the performance of either party, the insecure party may demand in writingadequate assurance of due performance. Until the insecure party receives thatassurance, if commercially reasonable the insecure party may suspend anyperformance for which he or she has not already received the agreed return.

   (3) A repudiation of the lease contract occurs if assuranceof due performance adequate under the circumstances of the particular case isnot provided to the insecure party within a reasonable time, not to exceed 30days after receipt of a demand by the other party.

   (4) Between merchants, the reasonableness of grounds forinsecurity and the adequacy of any assurance offered must be determinedaccording to commercial standards.

   (5) Acceptance of any nonconforming delivery or payment doesnot prejudice the aggrieved party's right to demand adequate assurance offuture performance.