8.2-609 - Right to adequate assurance of performance. - Virginia Statutes

§ 8.2-609. Right to adequate assurance of performance.

(1) A contract for sale imposes an obligation on each party that the other'sexpectation of receiving due performance will not be impaired. Whenreasonable grounds for insecurity arise with respect to the performance ofeither party the other may in writing demand adequate assurance of dueperformance and until he receives such assurance may if commerciallyreasonable suspend any performance for which he has not already received theagreed return.

(2) Between merchants the reasonableness of grounds for insecurity and theadequacy of any assurance offered shall be determined according to commercialstandards.

(3) Acceptance of any improper delivery or payment does not prejudice theaggrieved party's right to demand adequate assurance of future performance.

(4) After receipt of a justified demand failure to provide within areasonable time not exceeding thirty days such assurance of due performanceas is adequate under the circumstances of the particular case is arepudiation of the contract.

(1964, c. 219.)