If Appropriate Assurance Is Not Given in Response to a Demand

question 23

Multiple Choice

If appropriate assurance is not given in response to a demand for assurance of performance, the demanding party may:

• A) treat the contract as repudiated.
• B) sue for libel.
• C) file for an insurance payment.
• D) not replace the repudiated contract.

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Definitions:

Words of Negotiability

Phrases used in financial instruments that indicate the terms under which they can be transferred or assigned to another party.

Negotiation

A discussion aimed at reaching an agreement, where parties involved communicate back and forth to discuss and resolve differences.

Assignment

A transfer of rights or property from one party to another.

Transferee

A transferee is an individual or entity that receives a transfer of property, rights, or interest from another.