Under what circumstances can the "right to demand assurances" be invoked under the UCC?

The right to demand assurances under the Uniform Commercial Code (UCC) can be invoked when one party has reasonable grounds to fear that the other party will breach the contract. This mechanism is designed to provide a safeguard against potential non-performance before a breach actually occurs.

In practical terms, if a party legitimately doubts the other party’s ability or willingness to fulfill their obligations under the contract, they can request assurances to verify that performance will indeed take place as agreed. This helps to prevent losses that could arise from a breach and allows the concerned party to manage their risk effectively.

In contrast, the other scenarios are not applicable for invoking this right. For example, the delivery of goods not meeting quality standards pertains to breach of contract regarding performance, which is handled through different UCC provisions rather than the right to demand assurances. Similarly, objections to contract terms after a contract is signed or requests for changes in delivery date relate to negotiation or modification issues, not to a preemptive concern for potential breach. Therefore, invoking the right to demand assurances is specifically linked to a genuine concern about the other party’s capability to perform, which is fully aligned with the correct choice here.