{"id":903366,"date":"2024-10-01T16:37:29","date_gmt":"2024-10-01T22:37:29","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=903366"},"modified":"2024-10-01T16:37:42","modified_gmt":"2024-10-01T22:37:42","slug":"uniform-commercial-code-adequate-assurance-of-performance","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/uniform-commercial-code-adequate-assurance-of-performance\/","title":{"rendered":"Appellate Court\u00a0Rejects\u00a0UCC Adequate Assurance Claim in Contract Dispute"},"content":{"rendered":"\n<p>Jose A. Aquino | <a href=\"https:\/\/www.lexology.com\/library\/detail.aspx?g=98a54892-8057-4da7-b684-41722cca3bf2&amp;utm_source=Lexology+Daily+Newsfeed&amp;utm_medium=HTML+email+-+Body+-+General+section&amp;utm_campaign=Lexology+subscriber+daily+feed&amp;utm_content=Lexology+Daily+Newsfeed+2024-09-25&amp;utm_term=\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Duane Morris<\/a><\/p>\n\n\n\n<p>A recent New York appellate court opinion,\u00a0<em>Dreamco Development Corp. v. Cranesville Block Company, Inc.<\/em>, provides valuable insight into the application of the <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/uniform-commercial-code-construction-contract\/\">Uniform Commercial Code<\/a> (UCC) and the concept of \u201cadequate assurance of performance.\u201d<\/p>\n\n\n\n<p>The case centered on a one-page \u201cindependent contractor and consultant\u201d agreement. Under the contract, the plaintiff was responsible for selling a minimum quantity of concrete on behalf of the defendant in exchange for monthly payments. However, midway through the contract term, the defendant stopped making these payments and ultimately terminated the agreement. The defendant claimed that the plaintiff had sold less than 10% of the required minimum and failed to provide adequate assurance that the remaining amount would be sold before the contract\u2019s expiration.<\/p>\n\n\n\n<p>The key legal issue was whether the defendant was justified in demanding \u201cadequate assurance of due performance\u201d under UCC \u00a7 2-609(1). Under the UCC, a party to a contract can demand adequate assurance from the other party if they have reasonable grounds for insecurity regarding performance. If such assurance is not provided, the party may treat the contract as repudiated. However, the UCC applies only to contracts primarily for the sale of goods.<\/p>\n\n\n\n<p>The court found that the plaintiff\u2019s role was to sell concrete, a service, rather than to buy or sell goods. Because the contract was service-oriented and not predominantly for the sale of goods, the UCC did not apply. As a result, the defendant\u2019s demand for adequate assurance was unjustified, and their failure to make the agreed-upon monthly payments constituted a breach of contract. This ruling underscores the importance of identifying the nature of a contract\u2019s obligations and determining whether the UCC governs the agreement. It also highlights the need for parties to define their roles and responsibilities to prevent future disputes.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jose A. Aquino | Duane Morris A recent New York appellate court opinion,\u00a0Dreamco Development Corp. v. Cranesville Block Company, Inc., provides valuable insight into the application of the Uniform Commercial Code (UCC) and the concept of \u201cadequate assurance of performance.\u201d The case centered on a one-page \u201cindependent contractor and consultant\u201d agreement. Under the contract, the&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/uniform-commercial-code-adequate-assurance-of-performance\/\">Continue reading <span class=\"screen-reader-text\">Appellate Court\u00a0Rejects\u00a0UCC Adequate Assurance Claim in Contract Dispute<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[12088,9895,224,11134],"class_list":["post-903366","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-adequate-assurance-of-performance","tag-advise-consult","tag-construction-contract","tag-uniform-commercial-code","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Appellate Court\u00a0Rejects\u00a0UCC Adequate Assurance Claim in Contract Dispute - Advise &amp; 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