Article 2 — Sales · Section 2-609
UCC § 2-609 outlines a party's right to demand assurance of performance in a sales contract when there are reasonable grounds for insecurity.
Source: U.C.C. § 2-609
When reasonable grounds for insecurity arise with respect to the performance of either party, the other may in writing demand adequate assurance of due performance, and until he receives such assurance may suspend any performance for which he has not already received the agreed return.
UCC § 2-609 allows one party in a sales contract to ask for assurance when they believe the other party may not fulfill their obligations. If such assurance isn't given, the first party can pause their own performance under the contract until they receive it.
A reasonable guarantee that the other party will perform their contractual obligations.
A genuine concern about the other party's ability to perform under the contract.
Example 1
A supplier has consistently delivered goods late. The buyer requests a written assurance of timely future deliveries before placing another order.
Example 2
A contractor notices that the materials needed for a project are not arriving on time and fears the subcontractor may fail to complete their work. They seek written confirmation that the subcontractor will fulfill their obligations.