If a party to a contract for the sale of goods demands assurances of performance under the UCC and the other party fails to provide adequate assurances within the permitted period, what is the consequence?

• A. Anticipatory repudiation has occurred.
• B. The nonbreaching party must wait for performance.
• C. A breach occurs when assurances are not provided within 30 days after a written request.
• D. The contract is terminated automatically.

Answer: (C)

When there are reasonable grounds for insecurity about performance in a contract for the sale of goods, the other party may demand adequate assurances in writing. If those assurances are not provided within a reasonable time, not to exceed 30 days, the party who requested assurances may treat the contract as repudiated and breach may be asserted. This is the key rule: the 30‑day window is the permitted period, and failure to supply adequate assurances within that window triggers the breach/repudiation remedy, allowing suspension of performance and pursuit of remedies. The outcome is not simply waiting for performance, nor automatic termination without regard to the time limit, and the concept of anticipatory repudiation is tied to how the contract is treated after the assurances window lapses.