                                 CODE OF VIRGINIA

RIGHT TO ADEQUATE ASSURANCE OF PERFORMANCE (§ 8.2-609)

1. A contract for sale imposes an obligation on each party that the
other&#8217;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&#8217;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.

HISTORY: 1964, c. 219.