554.2609 Right to adequate 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. When reasonable grounds for insecurityarise with respect to the performance of either party the other may in writing demandadequate assurance of due performance and until that party receives such assurance mayif commercially reasonable suspend any performance for which that party has not alreadyreceived 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 thecircumstances 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] 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 Sat Dec 23 01:50:55 2023 Iowa Code 2024, Section 554.2609 (24, 0)
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