Official Code of Georgia Annotated

Title 11. COMMERCIAL CODE · Chapter 2. · Article 2. SALES · Part 6. BREACH, REPUDIATION, AND EXCUSE

11-2-609. Right to adequate assurance of performance.

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Current through: Including Acts of the 2025 Regular Session of the General Assembly.

(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 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’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 30 days such assurance of due performance as is adequate under the circumstances of the particular case is a repudiation of the contract.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Code 1933, § 109A-2-609, enacted by Ga. L. 1962, p. 156, § 1.

Law reviews

For article discussing applicability of right to adequate assurance of performance provision of Uniform Commercial Code to construction contracts, see 28 Emory L.J. 335 (1979). For article, “Contract Litigation and the Elite Bar in New York City, 1960-1980,” see 39 Emory L.J. 413 (1990).

Read the official page (the state's PDF, opened at the page this text was read from).

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t11-(v9)-2022-pdf.pdf, Volume V9, 2022 edition, pages 215 to 216; merge action: carried; file SHA-256 ad397fccbf21.

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