ASSURANCE

assurance,n.1.  Something  that  gives  confidence;  the  state  of  being  confident  or  secure

<self-assurance>.2.English  law.  See  life  insurance under  INSURANCE  <she  obtained  assurance

before  traveling  abroad,  naming  her  husband  as  the  beneficiary>.3.  The  act  of  transferring  real

property; the instrument by which it is transferred <the owner’s assurance of the farm to his son>.4.

A pledge or guarantee <adequate assurances of the borrower’s solvency>. — assure,vb.

adequate assurance. 1.Contracts. A circumstance or a contractual  obligor’s act that  gives an

obligee reason to be confident that the contract will be duly performed. • If the obligee has good

reason to feel insecure and justifiably demands assurance, an obligor’s failure to provide adequate

assurance may constitute a repudiation of the contract. UCC § 2-609. 2.Bankruptcy. Evidence that

a debtor will probably be able to perform its obligations under a contract, such as the posting of a

bond or a showing that the debtor will generate sufficient income to pay any arrearages and future

payment obligations. [Cases: Bankruptcy    2481, 3114. C.J.S. Bankruptcy §§ 103–104, 226.]

collateral assurance.A pledge made in addition to the principal assurance of an agreement.

common assurance.See MUNIMENT OF TITLE.

further assurance.A covenant contained in a warranty deed whereby the grantor promises to

execute any doc-ument that might be needed in the future to perfect the title that the original deed

purported to transfer.[Blacks Law 8th]