Also known as: reasonable causes · reasonable grounds
Written by attorneys · grounded in primary & secondary sources — see below
A factual basis sufficient to justify a party in taking a specified legal step or holding a particular belief. The standard requires objective circumstances that would lead a reasonable person to conclude the action or belief is warranted under the governing rule.
Select any source to read its text and confirm it supports the definition.
Ruby Rivera contracted to supply materials to Raphael Rivera over six months. After Raphael defaulted on loans and lost key equipment to a lender, Ruby sent a written demand for confirmation that deliveries would continue on schedule. Raphael provided no response. Ruby suspended further shipments and later defended against a breach claim by showing the lack of assurance justified treating the contract as repudiated.
Renata Russo delivered slightly mismatched components to Rita Russell under a supply contract. Renata had previously substituted comparable parts on smaller orders and offered a price allowance. After Rita rejected the tender, Renata promptly notified her of intent to replace the goods within the remaining contract period and completed the conforming delivery.
Ralph Richardson acquired shares in Riverstone Manufacturing two weeks before demanding that the board halt a profitable operation. He then filed a derivative action alleging future regulatory risks despite internal studies showing continued viability. After the court dismissed the suit under the business judgment rule, the corporation sought recovery of its defense costs on the ground that the action lacked reasonable cause.
Rowan Russell chartered a vessel from Rocky Mountain Mining. After the vessel failed multiple safety inspections and was twice detained, Rowan sent a written request for documentation confirming completed repairs and current seaworthiness. The response stated only that repairs were ongoing. Rowan then suspended hire payments and obtained a substitute vessel.
A physician performed a procedure after determining that continuing the pregnancy would gravely impair the patient's physical health. The physician documented specific medical findings supporting that conclusion. The determination supplied the required basis for proceeding despite statutory time limits.
After investigating a discrimination charge, the EEOC district director concluded there was reasonable cause to believe the allegations were true. The agency issued a right-to-sue letter. The charging party then filed a timely Title VII action in federal court.
The party must demonstrate objective circumstances creating a genuine risk that the other side will commit a total breach. Financial distress, loss of essential assets, repeated inspection failures, and vague responses to requests for confirmation each supply such grounds. Once the demand is made in writing, failure to provide adequate assurance within a reasonable time constitutes repudiation.
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…physician; and "(2) within [20] weeks after the commencement of the pregnancy [or after [20] weeks only if the physician has reasonable cause to believe (i) there is a substantial risk that continuance of the pregnancy would endanger the life of the mother or would gravely impair the physical or mental health of the mother, (ii)…
…when too long pursued, the legislature has judged to be detrimental to the health of the employes, and, so long as there are reasonable grounds for believing that this is so, its decision upon this subject cannot be reviewed by the Federal courts." Subsequently in Gundling v. Chicago , 177 U.S. 183, 188, this court said:…
…can be met. The class there alleged a broad-based policy of employment discrimination; upon proof of that allegation there were reasonable grounds
…Commission. In July 1980 (five years after petitioner filed the charges), the EEOC’s District Director found that there was
…the O’Connor plurality and was reasonable under that approach. The search was justified at its inception be
The court may order the plaintiff to pay the corporation's expenses if the demand or the proceeding was commenced or maintained without reasonable cause or for an improper purpose. Recent share purchases solely to gain standing, statements revealing an external agenda unrelated to corporate welfare, and pursuit of claims already protected by the business judgment rule support such a finding.
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Yes. If the buyer rejects a nonconforming tender that the seller reasonably believed would be acceptable with or without a money allowance, the seller may seasonably notify the buyer and obtain a further reasonable time to substitute conforming goods. Prior course of dealing showing acceptance of similar substitutions supports the seller's reasonable belief.
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The failure itself operates as a repudiation. The demanding party may then treat the contract as terminated, suspend its own remaining performance, and pursue remedies for total breach without waiting for an actual missed performance date.
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