Article 2 — Sales · Section 2-610
UCC § 2-610 discusses anticipatory repudiation in contract law, allowing a party to address potential issues in performance before the contract's due date.
Source: U.C.C. § 2-610
When either party to a contract has reasonable grounds to believe that the other party will not perform a material part of the contract, that party may... suspend performance or adequately assure the other party of performance.
UCC § 2-610 allows a party to a sales contract to take action if they believe the other party will not fulfill their obligations. This may include pausing their performance or requesting assurance that the performance will occur.
A statement or action indicating that a party will not be able to perform their contractual obligations.
A reasonable proof provided by a party considering a contract's performance is at risk, which confirms that the other party will fulfill their obligations.
Example 1
A buyer hears that a supplier is financially unstable and doubts their ability to deliver goods. The buyer may suspend their own performance and ask for proof that the supplier can fulfill the order.
Example 2
A contractor becomes aware that a subcontractor is failing to comply with project timelines and may terminate the contract if the subcontractor cannot provide reassurances of timely completion.