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Anticipatory Repudiation Lawyers

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What Is Anticipatory Repudiation?

Anticipatory repudiation, also known as anticipatory breach, occurs when a party to a contract stops acting in accordance with the contract before their performance for the contract is complete so that the other party is lead to believe that the breaching party will not complete their performance by the time that they are required to do so. The breaching party may give the impression of non-completion to the non-breaching party through a variety of actions or in-actions, including stopping production on the creation of an ordered item or refusing to accept payment.

What Is the Non-Breaching Party Entitled to?

Upon breach of contract, the aggrieved party is entitled to damages and may also be released from any obligations that they still face under the contract. In anticipatory repudiation, the aggrieved party is entitled to:

  • Sue the breaching party for the breach
  • Choose a remedy for the breach, such as monetary damages or performance of the contract by the breaching party
  • Suspend his own performance

However, the aggrieved party will likely have to wait for a reasonable amount of time for the other party to perform the contract if completion of the contract is the remedy granted by the court.

Can Repudiation of a Contract Be Retracted?

Yes, the repudiating party may withdraw its anticipatory breach:

  • By any method that clearly indicates to the aggrieved party that the contract will be performed
  • If it reimburses the aggrieved party for any delay caused by the repudiation
  • Unless the aggrieved party has shown that it relied on that repudiation

What Should a Party Do If It Suspects Anticipatory Repudiation?

There are a number of things a party can do after receiving actual notice or other evidence of an anticipatory breach. The aggrieved party has the right to:

  • Demand a guarantee of performance
  • Accept or reject items under the contract, in whole or in part
  • Reject any installment that is defective – if the defect significantly impairs the value of the whole contract, and cannot be fixed, the buyer can treat it as a breach of the entire contract, but the buyer must notify the seller of the defect

Do I Need a Lawyer for My Anticipatory Repudiation Contract Issue?

Contract law and anticipatory repudiation can be quite complicated. A business law attorney can advise you on what to do if you are insecure about the whether the other party will perform the terms of the contract or not. Additionally, every state has different filing procedures and deadlines for breach of contract claims. An attorney can help a party conform to the applicable procedural rules and collect all the proper documents to prove a breach.

Photo of page author Kristen Johnson

, LegalMatch Legal Writer

Last Modified: 09-30-2016 02:28 PM PDT

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