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.
