§ 6A-2-609 - Right to adequate assurance of performance. - Rhode Island Statutes

SECTION 6A-2-609

   § 6A-2-609  Right to adequate assurance ofperformance. – (1) A contract for sale imposes an obligation on each party that the other'sexpectation of receiving due performance will not be impaired. When reasonablegrounds for insecurity arise with respect to the performance of either partythe other may in writing demand adequate assurance of due performance and untilhe or she receives such assurance may if commercially reasonable suspend anyperformance for which he or she has not already received the agreed return.

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

   (3) Acceptance of any improper delivery or payment does notprejudice the aggrieved party's right to demand adequate assurance of futureperformance.

   (4) After receipt of a justified demand failure to providewithin a reasonable time not exceeding thirty (30) days such assurance of dueperformance as is adequate under the circumstances of the particular case is arepudiation of the contract.