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.
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:
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.
Yes, the repudiating party may withdraw its anticipatory breach:
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:
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.
Last Modified: 09-30-2016 02:28 PM PDTLaw Library Disclaimer
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