(1) A contract for sale imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired. 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 if commercially reasonable 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 of any assurance offered shall be determined according to commercial standards.
(3) Acceptance of any improper delivery or payment does not prejudice the aggrieved party's right to demand adequate assurance of future performance.
(4) After receipt of a justified demand, failure to provide within a reasonable time not exceeding thirty days such assurance of due performance as is adequate under the circumstances of the particular case is a repudiation of the contract.
Source: L. 65: p. 1331, § 1. C.R.S. 1963: § 155-2-609.
Notes of Decisions
Cited in
5
cases, 1987–2002 · leading case:
Grant v. People, 48 P.3d 543 (Colo. 2002).
Grant v. People, 48 P.3d 543 (Colo. 2002).
· cites it 4× “Another example appears in the UCC, section 4-2-609(1), 2 C.R.S. (2001): "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 .”
Colorado Interstate Gas Co. v. Chemco, Inc., 854 P.2d 1232 (Colo. 1993).
· cites it 4× “” See § 4-2-609, 2 C.R.S. (1992). Absent such assurances, Chemco would not expend the money necessary to redrill the Wear 1 and connect the Mundhenke, producing from only the Wear 3-2 and the Muir 1-A.”
Scott v. Crown, 765 P.2d 1043 (Colo. Ct. App. 1988).
· cites it 4× “In our view, that was insufficient to make that suspension justified under § 4-2-609. Also, there was not a subsequent pattern of interaction between the parties that would clearly demonstrate that Buyer understood that Seller had requested assurances of performance.”
Richards Engineers, Inc. v. Spanel, 745 P.2d 1031 (Colo. Ct. App. 1987).
· cites it 3× “Section 4-2-609, C.R.S., provides that: “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.”
Colorado Interstate Gas Co. v. Chemco, Inc., 987 P.2d 829 (Colo. Ct. App. 1998).
· cites it 3× “Section 4-2-609(1), C.R.S.1997, provides that a party has a right to adequate assurance of performance: A contract for sale imposes an obligation on each party that the other’s expectation of receiving due performance will not be impaired.”
Colo. Rev. Stat. § 4-2-609(1): 3 cases
Grant v. People, 48 P.3d 543 (Colo. 2002).
“Another example appears in the UCC, section 4-2-609(1), 2 C.R.S. (2001): "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 .”
Scott v. Crown, 765 P.2d 1043 (Colo. Ct. App. 1988).
“In our view, that was insufficient to make that suspension justified under § 4-2-609. Also, there was not a subsequent pattern of interaction between the parties that would clearly demonstrate that Buyer understood that Seller had requested assurances of performance.”
Colorado Interstate Gas Co. v. Chemco, Inc., 987 P.2d 829 (Colo. Ct. App. 1998).
“Section 4-2-609(1), C.R.S.1997, provides that a party has a right to adequate assurance of performance: A contract for sale imposes an obligation on each party that the other’s expectation of receiving due performance will not be impaired.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.