8.2A-401 - A-401. Insecurity: adequate assurance of performance. - Virginia Statutes

§ 8.2A-401. Insecurity: adequate assurance 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 respect to theperformance of either party, the insecure party may demand in writingadequate assurance of due performance. Until the insecure party receivesthat assurance, 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 assurance of dueperformance adequate under the circumstances of the particular case is notprovided to the insecure party within a reasonable time, not to exceed thirtydays after receipt of a demand by the other party.

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

(5) Acceptance of any nonconforming delivery or payment does not prejudicethe aggrieved party's right to demand adequate assurance of futureperformance.

(1991, c. 536.)