{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.2A-401.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.2A-401.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.2A-401.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.2A-401.html"}],"law_id":78858,"edition_id":1,"section_id":78858,"structure_id":14708,"section_number":"8.2A-401","catch_line":"Insecurity: adequate assurance of performance","history":"1991, c. 536.","full_text":"1\n\nA lease contract imposes an obligation on each party that the other’s expectation of receiving due performance will not be impaired.2\n\nIf reasonable grounds for insecurity arise with respect to the performance of either party, the insecure party may demand in writing adequate assurance of due performance. Until the insecure party receives that assurance, if commercially reasonable the insecure party may suspend any performance for which he or she has not already received the agreed return.3\n\nA repudiation of the lease contract occurs if assurance of due performance adequate under the circumstances of the particular case is not provided to the insecure party within a reasonable time, not to exceed thirty days after receipt of a demand by the other party.4\n\nBetween merchants, the reasonableness of grounds for insecurity and the adequacy of any assurance offered shall be determined according to commercial standards.5\n\nAcceptance of any nonconforming delivery or payment does not prejudice the aggrieved party’s right to demand adequate assurance of future performance.","order_by":null,"text":{"0":{"id":282480,"text":"A lease contract imposes an obligation on each party that the other’s expectation of receiving due performance will not be impaired.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"next_prefix":"2"},"1":{"id":282481,"text":"If reasonable grounds for insecurity arise with respect to the performance of either party, the insecure party may demand in writing adequate assurance of due performance. Until the insecure party receives that assurance, if commercially reasonable the insecure party may suspend any performance for which he or she has not already received the agreed return.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"2":{"id":282482,"text":"A repudiation of the lease contract occurs if assurance of due performance adequate under the circumstances of the particular case is not provided to the insecure party within a reasonable time, not to exceed thirty days after receipt of a demand by the other party.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"3":{"id":282483,"text":"Between merchants, the reasonableness of grounds for insecurity and the adequacy of any assurance offered shall be determined according to commercial standards.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"4":{"id":282484,"text":"Acceptance of any nonconforming delivery or payment does not prejudice the aggrieved party’s right to demand adequate assurance of future performance.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4"}},"ancestry":[{"id":14708,"edition_id":1,"name":"Performance of Lease Contract; Repudiated, Substituted and Excused","identifier":"4","label":"part","depth":2,"order_by":1,"parent_id":12736,"metadata":{},"date_created":"2026-06-26 03:49:26","date_modified":"2026-06-26 03:49:26","permalink":{"id":282539,"object_type":"structure","relational_id":14708,"identifier":"4","token":"8.2A\/4","url":"\/8.2A\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12736,"edition_id":1,"name":"Commercial Code \u2014 Leases","identifier":"8.2A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":282367,"object_type":"structure","relational_id":12736,"identifier":"8.2A","token":"8.2A","url":"\/8.2A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":78858,"structure_id":14708,"section_number":"8.2A-401","catch_line":"Insecurity: adequate assurance of performance","url":"\/8.2A-401\/","token":"8.2A\/4\/8.2A-401","metadata":false},{"id":76228,"structure_id":14708,"section_number":"8.2A-402","catch_line":"Anticipatory repudiation","url":"\/8.2A-402\/","token":"8.2A\/4\/8.2A-402","metadata":false},{"id":66265,"structure_id":14708,"section_number":"8.2A-403","catch_line":"Retraction of anticipatory repudiation","url":"\/8.2A-403\/","token":"8.2A\/4\/8.2A-403","metadata":false},{"id":76466,"structure_id":14708,"section_number":"8.2A-404","catch_line":"Substituted performance","url":"\/8.2A-404\/","token":"8.2A\/4\/8.2A-404","metadata":false},{"id":80718,"structure_id":14708,"section_number":"8.2A-405","catch_line":"Excused performance","url":"\/8.2A-405\/","token":"8.2A\/4\/8.2A-405","metadata":false},{"id":65599,"structure_id":14708,"section_number":"8.2A-406","catch_line":"Procedure on excused performance","url":"\/8.2A-406\/","token":"8.2A\/4\/8.2A-406","metadata":false},{"id":56364,"structure_id":14708,"section_number":"8.2A-407","catch_line":"Irrevocable promises: finance leases","url":"\/8.2A-407\/","token":"8.2A\/4\/8.2A-407","metadata":false}],"next_section":{"id":76228,"structure_id":14708,"section_number":"8.2A-402","catch_line":"Anticipatory repudiation","url":"\/8.2A-402\/","token":"8.2A\/4\/8.2A-402","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.2A-401\/","history_text":"

This law was first created in 1991. The record of its establishment is cataloged in chapter 536 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1991 \u201cActs\u201d aren\u2019t available online.<\/p>","references":[{"id":76228,"section_number":"8.2A-402","catch_line":"Anticipatory repudiation","order_by":null,"url":"\/8.2A-402\/"}],"refers_to":false,"permalink":{"id":282541,"object_type":"law","relational_id":78858,"identifier":"8.2A-401","token":"8.2A\/4\/8.2A-401","url":"\/8.2A-401\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.2A-401\/","token":"8.2A\/4\/8.2A-401","dublin_core":{"Title":"Insecurity: adequate assurance of performance","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.2A-401","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

1.<\/span> A lease contract<\/span> imposes an obligation on each party<\/span> that the other’s expectation of receiving due performance will not be impaired. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If reasonable grounds for insecurity arise with respect to the performance of either party<\/span>, the insecure party<\/span> may demand in writing adequate assurance of due performance. Until the insecure party<\/span> receives that assurance, if commercially reasonable the insecure party<\/span> may suspend any performance for which he or she has not already received the agreed return. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A repudiation of the lease contract<\/span> occurs if assurance of due performance adequate under the circumstances of the particular case is not provided to the insecure party<\/span> within a reasonable time, not to exceed thirty days after receipt of a demand by the other party<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Between merchants, the reasonableness of grounds for insecurity and the adequacy of any assurance offered shall be determined according to commercial standards. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Acceptance of any nonconforming delivery or payment does not prejudice the aggrieved party<\/span>’s right to demand adequate assurance of future performance. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nINSECURITY: ADEQUATE ASSURANCE OF PERFORMANCE (\u00a7 8.2A-401)\n\n1. A lease contract imposes an obligation on each party that the other’s\nexpectation of receiving due performance will not be impaired.\n\n2. If reasonable grounds for insecurity arise with respect to the performance of\neither party, the insecure party may demand in writing adequate assurance of due\nperformance. Until the insecure party receives that assurance, if commercially\nreasonable the insecure party may suspend any performance for which he or she\nhas not already received the agreed return.\n\n3. A repudiation of the lease contract occurs if assurance of due performance\nadequate under the circumstances of the particular case is not provided to the\ninsecure party within a reasonable time, not to exceed thirty days after receipt\nof a demand by the other party.\n\n4. Between merchants, the reasonableness of grounds for insecurity and the\nadequacy of any assurance offered shall be determined according to commercial\nstandards.\n\n5. Acceptance of any nonconforming delivery or payment does not prejudice the\naggrieved party’s right to demand adequate assurance of future\nperformance.\n\nHISTORY: 1991, c. 536.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}