If a party reasonably doubts performance and the other party fails to provide adequate assurance, the requesting party may treat this as

• A. Anticipatory repudiation.
• B. Waiver.
• C. A material breach.
• D. Substantial performance.

Answer: (A)

Reasonable insecurity about performance, combined with a failure to provide adequate assurance, signals anticipatory repudiation. In contract law, anticipatory repudiation occurs when one party clearly indicates it will not perform when due, or when circumstances show they cannot or will not perform. Under the UCC, if there are reasonable grounds for insecurity, the other party may demand adequate assurances in writing. If those assurances are not provided within a reasonable time, the insecure party may treat the contract as breached and pursue remedies, such as suspending performance or suing for damages. This fits the scenario best because the doubt about performance plus lack of adequate assurances shows an unmistakable commitment not to perform, not a waiver, not a material breach, and not substantial performance.