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UCC Contracts QUESTION #5865
Question 1
A Buyer and Seller enter a contract for 500 laptops. The Seller says, 'I might not be able to deliver next month.' Does the Buyer have any immediate rights?
  • Yes, the Buyer can sue for breach immediately.
  • No, the Buyer must wait until the delivery date.
  • Yes, the Buyer can demand 'Adequate Assurance of Performance'.✔️
  • No, unless the Seller uses the word 'repudiate'.
Correct Answer Explanation
Under UCC §2-609, when reasonable grounds for insecurity arise, a party may in writing demand adequate assurance of due performance.