Failing to Pay During a Long-Term Contract
If a buyer begins to slow-pay or no-pay on a long-term contract, a seller can request adequate assurance from the buyer that payment will be made. The seller must notify the buyer in writing that such assurance is required. If the buyer does not respond in a reasonable time, or does not provide sufficient assurance of payment, e.g. a bond, letter of credit, or payment in advance, then the contract will have been repudiated by the buyer. The seller will then have to proceed as explained in Failure to Accept by Buyer.