The concept of anticipated breach is related to the idea that the debtor has the right to require the debtor to provide reasonable assurances that the contractual obligations will be fulfilled. If the debtor makes such a request for reasonable insurance, a request for performance of the contract if there are reasonable grounds for uncertainty as to the performance of the other party; Failure to do so is a prospective violation. and there is no reasonable assurances, the debtor may assume that he will commit a premature breach and consider that it is so. That is, after the conclusion of the contract, the debtor may encounter the troubling news that the debtor`s ability to perform is fragile. A change in the financial situation occurs, an unknown claim to land rights appears, a labor strike occurs or a number of situations may arise that affect the performance of contractual obligations. In these circumstances, the debtor has the right to demand reasonable assurance that it will provide the contractually obligated service. The general reason for such a rule is set out in Article 2-609(1) of the UCC, which states that a contract „imposes on each party the obligation that the expectation of the other party to receive adequate performance is not affected“. In addition, a debtor would be foolish if, if possible, other arrangements were not made if it were to have the effect that its original debtor would not be able to provide enforcement. The debtor must have reasonable grounds to believe that it thus constitutes an infringement.

The fear must be that of a loss of performance, which would amount to a total violation; a minor defect, which can be corrected and would at most result in damages, generally does not support the insurance claim. Under federal insolvency laws, as outlined in Chapter 35 Bankruptcy, certain obligations are met once a court declares a debtor bankrupt. The law defines the special types of debts that are cancelled in the event of bankruptcy. The obligation to pay for the contract may depend on the satisfaction of a third party. Construction contracts often make the buyer`s payment obligation dependent on the client`s receipt of an architect`s certificate of compliance with all contractual conditions; Road construction contracts often require that the work be performed „to the satisfaction of the district engineer.“ These conditions can be onerous. .