Also known as: ius exigendi · right to demand · right of exaction
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
A legal right to demand adequate assurance of future performance under a contract. The right persists even after acceptance of nonconforming performance.
A partner's right to demand that distributions from a partnership or limited partnership be made only in money. In-kind distributions are allowed solely when each part of the asset is fungible and value proportions are equal.
A legal right to demand adequate assurance of future performance under a contract. The right persists even after acceptance of nonconforming performance.
Select any source to read its text and confirm it supports the definition.
A partner's right to demand that distributions from a partnership or limited partnership be made only in money. In-kind distributions are allowed solely when each part of the asset is fungible and value proportions are equal.
Select any source to read its text and confirm it supports the definition.
Each sense below has its own examples, sources, and questions.
Jennifer Jackson accepted a late interest payment from Jose Jimenez on a goods supply contract. When new reports indicated Jimenez might miss future deliveries, Jackson sent a written demand for assurance of performance. Jimenez claimed the prior acceptance barred the demand. The demand remained valid because acceptance of improper payment does not eliminate the right to seek assurance of future performance.
Jerome Jackson contracted to buy equipment from Jiang Textiles. After learning of production delays at the factory, Jackson sent a written demand for detailed production schedules and financial data. Jiang Textiles refused to respond. Jackson suspended further payments pending assurance, preserving the contractual expectation of due performance.
Jefferson Trust agreed to purchase monthly shipments from June Jiang. Reports of warehouse damage prompted a written demand for certification that remaining goods would meet contract specifications. Jiang provided only a vague reply. The demand stood because prior minor documentation issues did not waive the right to seek assurance on new quality concerns.
Jasmine Jordan ordered custom parts from Jennings Forge. Trade reports of staff layoffs created reasonable grounds for insecurity. Jordan sent a written demand for a production plan and temporarily slowed new orders. The suspension was justified while awaiting adequate assurance under commercial standards.
No. Acceptance of any improper delivery or payment does not prejudice the aggrieved party's right to demand adequate assurance of future performance. A buyer may still insist on written assurance when new grounds for insecurity arise.
Supporting sources
A party with reasonable grounds for insecurity may demand adequate assurance in writing and, if commercially reasonable, suspend performance for which it has not yet received the agreed return. Failure to provide adequate assurance within a reasonable time constitutes repudiation.
Supporting sources
Jackson Mutual decided to distribute three unique paintings to its partners rather than cash. Partner Jasmine Jordan objected and demanded money instead. The partnership could not force the in-kind transfer because partners lack any right to demand or receive distributions in a form other than money unless every part of the asset is fungible.
Jennings Forge, a limited partnership, proposed distributing mixed-model vehicles to its limited partners. Limited partner Joanna Jung demanded cash. The partnership could not compel acceptance of the vehicles because a partner has no right to demand or receive a distribution in any form other than money absent fungible asset parts.
No. A person does not have a right to demand or receive a distribution from a partnership in any form other than money. In-kind distributions are permitted only when each part of the asset is fungible with every other part and value proportions are equal.
Supporting sources
…say, to prohibit the conduct both between same-sex and different-sex participants. Equality of treatment and the due process right to demand respect for conduct protected by the substantive guarantee of liberty are linked in important respects, and a decision on the latter point advances both interests. If protected conduct is…