A party to a sales contract who is afraid that the other party will not perform may seek to gain additional confidence by demanding some form of:

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The party may seek assurance from the other party to gain additional confidence that they will perform as agreed upon in the sales contract. Assurance can come in various forms such as a letter of credit, performance bond, or personal guarantee. These forms of assurance are meant to provide the party with some financial security should the other party fail to perform. Bailment refers to a transfer of possession of property, while security and assignment are not relevant in this context.

A Party to a Sales Contract Who Is Afraid That