Indiana Code
Ind. Code § 26-1-2-609 (2026)
Right to adequate assurance of performance
✓ current as of May 2026
Sec. 609. (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 (30) days such assurance of due performance as is adequate under the circumstances of the particular case is a repudiation of the contract.
Formerly: Acts 1963, c.317, s.2-609.
Notes of Decisions
Cited in 12
cases (2 in the last 5 years), 1998–2024 · leading case: BRC Rubber & Plastics, Incorpo v. Cont'l Carbon Co., 900 F.3d 529 (7th Cir. 2018).
BRC Rubber & Plastics, Incorpo v. Cont'l Carbon Co., 900 F.3d 529 (7th Cir. 2018). “" See Ind. Code § 26-1-2-609 . 33 This section generally "provides that a party feeling insecure about the other party's contract performance may seek assurance of performance.”
Beijing Auto. Indus. Imp. & Exp. Corp. v. Indian Indus., Inc., 105 F. Supp. 3d 879 (S.D. Ind. 2015). “Repudiation Under Indiana Code § 26-1-2-609 Section 26-1-2-609 of Indiana’s version of the Uniform Commercial Code provides that: (1) A contract for sale imposes an obligation on each party that the other’s expectation of receiving due performance will not be impaired.”
Jay Cnty. Rural Elec. Membership Corp. v. Wabash Valley Power Ass'n, 692 N.E.2d 905 (Ind. Ct. App. 1998). “Jay County also argues that the trial court erred in determining that WVPA provided the “adequate assurance of performance” required by Ind.Code 26-1-2-609, which provides that when “reasonable grounds for insecurity arise with respect to the performance of either party the…”
Wildwood Indus., Inc. v. Genuine Mach. Design, Inc., 587 F. Supp. 2d 1035 (N.D. Ind. 2008). “Ind.Code 26-1-2-609 provides that a party feeling insecure about the other party’s contract performance may seek assurance of performance: (1) A contract for sale imposes an obligation on each party that the other’s expectation of receiving due performance will not be impaired.”
BRC Rubber & Plastics, Incorpo v. Cont'l Carbon Co., 981 F.3d 618 (7th Cir. 2020). “Section 2-609 on ad- equate assurance appears in Indiana Code § 26-1-2-609. 1 1 Indiana Code § 26-1-2-609 provides in full: (1) A contract for sale imposes an obligation on each party that the other’s expectation of receiving due per- formance will not be impaired.”
Hawa v. Moore, 947 N.E.2d 421 (Ind. Ct. App. 2011). “§ 2-609; Ind.Code § 26-1-2-609. 4 . We note that Moore’s list of total costs incurred, Respondent's Ex.”
BRC Rubber & Plastics, Inc. v. Cont'l Carbon Co., 949 F. Supp. 2d 862 (N.D. Ind. 2013). “See Ind. Code §§ 26-1-2-609 , 2-610(b), 2-711(1); see also Jay Cnty.”
3155 Dev. Way, LLC v. APM Rental Props., LLC, 52 N.E.3d 854 (Ind. Ct. App. 2016). “2011) (citing Restatement (Second) of Contracts §§ 250, 251); see generally Ind.Code §§ 26-1-2-609, 26-1-2-610. APM demanded assurances that Development would be able to secure an easement to use the access road prior to the September closing date.”
BRC Rubber & Plastics Inc v. Cont'l Carbon Co. (N.D. Ind. 2019). “§ 2-609 and Indiana Code § 26-1-2-609. Id. at 543-44.”
BRC Rubber & Plastics, Incorpo v. Cont'l Carbon Co. (7th Cir. 2020). “Section 2-609 on ad- equate assurance appears in Indiana Code § 26-1-2-609. 1 1 Indiana Code § 26-1-2-609 provides in full: (1) A contract for sale imposes an obligation on each party that the other’s expectation of receiving due per- formance will not be impaired.”
Martin v. Thor Motor Coach Inc (N.D. Ind. 2024). “Indeed, the Martins point to its service manager’s testimony that there was “nothing else they could have done” to try to repair the unit or its leveling system [86-4 at 49]. To the extent the Martins worried whether Thor would have honored its contract, they could have sought…”
Martin v. Thor Motor Coach Inc (N.D. Ind. 2024). “The Martins need only have chosen their preferred service center and then requested payment from Thor, or otherwise coordinated payment arrangements in advance if they preferred. And if the Martins struggled to understand this obligation on the company, they could have sought…”
— Ind. Code § 26-1-2-609(1) — 3 cases
Beijing Auto. Indus. Imp. & Exp. Corp. v. Indian Indus., Inc., 105 F. Supp. 3d 879 (S.D. Ind. 2015). “Repudiation Under Indiana Code § 26-1-2-609 Section 26-1-2-609 of Indiana’s version of the Uniform Commercial Code provides that: (1) A contract for sale imposes an obligation on each party that the other’s expectation of receiving due performance will not be impaired.”
BRC Rubber & Plastics, Inc. v. Cont'l Carbon Co., 949 F. Supp. 2d 862 (N.D. Ind. 2013). “See Ind. Code §§ 26-1-2-609 , 2-610(b), 2-711(1); see also Jay Cnty.”
BRC Rubber & Plastics Inc v. Cont'l Carbon Co. (N.D. Ind. 2019). “§ 2-609 and Indiana Code § 26-1-2-609. Id. at 543-44.”
— Ind. Code § 26-1-2-609(2) — 1 case
Beijing Auto. Indus. Imp. & Exp. Corp. v. Indian Indus., Inc., 105 F. Supp. 3d 879 (S.D. Ind. 2015). “Repudiation Under Indiana Code § 26-1-2-609 Section 26-1-2-609 of Indiana’s version of the Uniform Commercial Code provides that: (1) A contract for sale imposes an obligation on each party that the other’s expectation of receiving due performance will not be impaired.”
— Ind. Code § 26-1-2-609(3) — 1 case
BRC Rubber & Plastics Inc v. Cont'l Carbon Co. (N.D. Ind. 2019). “§ 2-609 and Indiana Code § 26-1-2-609. Id. at 543-44.”
— Ind. Code § 26-1-2-609(4) — 1 case
BRC Rubber & Plastics, Inc. v. Cont'l Carbon Co., 949 F. Supp. 2d 862 (N.D. Ind. 2013). “See Ind. Code §§ 26-1-2-609 , 2-610(b), 2-711(1); see also Jay Cnty.”
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