MARVIN MANDEL, Governor

137

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 thirty
days such assurance of due performance as is adequate
under the circumstances of the particular case is a
repudiation of the contract.

2—610. Anticipatory repudiation.

When either party repudiates the contract with
respect to a performance not yet due the loss of which
will substantially impair the value of the contract to
the other, the aggrieved party may

(a) For a commercially reasonable time await
performance by the repudiating party; or

(b) Resort to any remedy for breach (§ 2—703
or § 2—711), even though he has notified the repudiating
party that he would await the latter's performance and
has urged retraction; and

(c) In either case suspend his own
performance or proceed in accordance with the provisions
of this [subtitle] TITLE on the seller's right to
identify goods to the contract notwithstanding breach or
to salvage unfinished goods (§ 2—704).

2—611. Retraction of anticipatory repudiation.

(1)   Until the repudiating party's next performance
is due he can retract his repudiation unless the
aggrieved party has since the repudiation cancelled or
materially changed his position or otherwise indicated
that he considers the repudiation final.

(2)   Retraction may be by any method which clearly
indicates to the aggrieved party that the repudiating
party intends to perform, but must include any assurance
justifiably demanded under the provisions of this