70A-2-609 - Right to adequate assurance of performance. - Utah Statutes

70A-2-609. Right to adequate assurance of performance.

(1) A contract for sale imposes an obligation on each party that the other's expectation ofreceiving due performance will not be impaired. When reasonable grounds for insecurity arisewith respect to the performance of either party the other may in writing demand adequateassurance of due performance and until he receives such assurance may if commerciallyreasonable suspend any performance for which he has not already received the agreed return.
(2) Between merchants the reasonableness of grounds for insecurity and the adequacy ofany assurance offered shall be determined according to commercial standards.
(3) Acceptance of any improper delivery or payment does not prejudice the aggrievedparty's right to demand adequate assurance of future performance.
(4) After receipt of a justified demand failure to provide within a reasonable time notexceeding 30 days such assurance of due performance as is adequate under the circumstances ofthe particular case is a repudiation of the contract.

Enacted by Chapter 154, 1965 General Session