Gray wrote:pancakes3 wrote:DJM wrote:Can someone please explain adequate assurances for contracts? When to get them? Why not just wait and sue when they breach? And whatever else I should know about them?
adequate assurances is a required step for anticipatory repudiation aka anticipatory breach. You don't want to wait and sue because litigation is expensive and drawn out. If I promise to buy a box of apples from you but I'm shady as hell and the check for my down payment of the apples bounced, do you still want to hand me over your box of apples so you can wait and see, or would you rather try for anticipatory repudiation - get out of having to give me the box, and then still have the opportunity to sell that box to someone else?
You also need a reason to request them - In this example the check bounced, but you can't just randomly request them IIRC. The other party HAS to be acting shady.
perfect thanks pancakes and gray!