Bank Loan Assurance - Payment for Water Tank
Assurance of Due Performance (2-609)
- P was to build D a water tank and be paid in full 30 days after completion. P applied for bank loan but when it fell through, P asked for assurances and stopped work when D did satisfactorily assure them they had $ to pay.
- P sued for breach claiming repudiation; D countered that P was the breaching party.
While P had a right to ask for assurances, they wrongfully breached by stopping work b/c they did not reasonably need assurance at that time because money was not due for months.