Also known as: reasonable ground · reasonable basis
Written by attorneys · grounded in primary & secondary sources — see below
A factual basis that would lead a reasonable person to hold a particular belief or take a specified action. The standard requires objective circumstances sufficient to support the belief or action under the governing rule.
River Coastal received only half the ordered containers and learned of storm damage to Silver Sea's warehouse. These facts supplied reasonable grounds for insecurity about future performance. River Coastal sent a written demand for adequate assurance and suspended further payments until Silver Sea responded with detailed certifications.
Two independent contractors each damaged separate sections of a building during unrelated projects. The resulting harms were distinct, creating a reasonable basis for dividing liability according to each contractor's contribution. Each contractor was held responsible only for the portion of harm it caused.
Select any source to read its text and confirm it supports the definition.
A buyer rejected a shipment of parts that arrived with minor cosmetic flaws. The seller had reasonable grounds to believe the buyer would accept the parts with a price allowance. After seasonable notice, the seller obtained additional time to deliver conforming replacements.
Two factories discharged pollutants into a river at different times, causing a single fish kill. Evidence permitted a reasonable basis for determining each factory's contribution to the total harm. Liability was apportioned between the factories rather than imposed jointly.
Noon Cars learned that Crown Automotive had suffered a plant fire, laid off staff, and missed prototype deadlines. These events created reasonable grounds for insecurity about Crown's ability to meet future orders. Noon Cars sent a written demand for a detailed recovery timeline and suspended further commitments.
School officials received reports that a student had hidden contraband in a locker. The reports supplied reasonable grounds to believe school rules had been violated. Officials conducted a targeted search that was reasonably related to the suspected infraction and not excessively intrusive.
Objective facts showing a real possibility of nonperformance create reasonable grounds. An incomplete delivery combined with reports of facility damage, for example, justified a written demand. Between merchants the adequacy of any response is judged by commercial standards.
Supporting sources
Reasonable grounds permit certain school searches and some statutory disclosures without a warrant. Probable cause is required for most criminal warrants. The lower threshold reflects the reduced privacy expectation in the school setting or the limited scope of the statutory procedure.
Supporting sources
A vague statement of commitment without timelines or supporting documentation is usually inadequate. Commercial standards in the relevant industry determine what level of detail is required after prior defects have been reported. Failure to provide adequate assurance within a reasonable time constitutes repudiation.
Supporting sources
… category of cases involving chronically ill incompetent patients, Missouri's decision is anomolous. In short, there is no reasonable ground for believing that Nancy Beth Cruzan has any personal interest in the perpetuation of what the State has decided is her life. As I have already suggested, it would be possible to…