Iowa Code

Iowa Code § 554.2609 (2026)

Right to adequate assurance of performance

✓ current as of July 2026
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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 that party receives such assurance may if commercially reasonable suspend any performance for which that party 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. [C24, 27, 31, 35, 39, §9982 – 9984, 9992; C46, 50, 54, 58, 62, §554.54 – 554.56, 554.64; C66, 71, 73, 75, 77, 79, 81, §554.2609] Referred to in §554.2210, 554.2611 \n

Notes of Decisions
Cited in 7 cases, 1991–2019 · leading case: Land O'Lakes, Inc. v. Hanig, 610 N.W.2d 518 (Iowa 2000).
Land O'Lakes, Inc. v. Hanig, 610 N.W.2d 518 (Iowa 2000). · cites it 4× “See Iowa Code § 554.2609 (4) (1995). A failure to provide adequate assurances within that time frame is deemed a repudiation of the contract.”
Top of Iowa Coop. v. Sime Farms, Inc., 608 N.W.2d 454 (Iowa 2000). · cites it 2× “See Iowa Code § 554.2609 (1995) (providing that party’s, failure to provide adequate assurance after a justified demand is a repudiation of the contract).”
Johnson v. Land O' Lakes, Inc., 181 F.R.D. 388 (N.D. Iowa 1998). · cites it 4× “The Johnsons point out that Iowa Code § 554.2609 (1), part of Iowa’s Uniform Commercial Code (UCC), requires that a demand for adequate assurances be in writing and that decisions of the Iowa Supreme Court demonstrate that “[t]he clear Iowa law is that when something is required…”
Bartlett Grain Co., LP v. Steven Carl Sheeder & Maureen Jeanette Pace, 829 N.W.2d 18 (Iowa 2013). · cites it 2× “” On or about April 19, 2011, Bartlett maintains that it discovered “reasonable grounds for insecurity” as to whether Sheeder was going to perform the contracts by delivering grain at the contracted prices.”
S & S, INC. v. Meyer, 478 N.W.2d 857 (Iowa Ct. App. 1991). · cites it 2× “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…”
Atwood-Kellogg, Inc. v. Nickeson Farms, 1999 SD 148 (S.D. 1999). · cites it 4× “Iowa 1998), the district court faced a statute, Iowa Code § 554.2609 (1), which is analogous to SDCL 57A-2-609(1).”
Heartland Co-Op v. Ronald Nelson (Iowa Ct. App. 2019). “See Iowa Code § 554.2609 (4) (providing that party’s failure to provide adequate assurance after a justified demand is a repudiation of the contract).”
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.