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Simple English definitions for legal terms
anticipatory repudiation
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A quick definition of anticipatory repudiation:
Anticipatory repudiation is when one party to a contract says or does something that shows they won't do what they promised in the future. This means the other party can immediately sue for damages and cancel the contract. It can happen before the time for performance. The three actions that constitute anticipatory repudiation are: (a) a positive statement indicating that the promisor will not or cannot perform their duties; (b) transferring an interest in something essential for performance to a third person; or (c) any voluntary act that makes performance impossible. Total repudiation is when a party unconditionally refuses to perform their duties, which allows the other party to stop performing as well.A more thorough explanation:
Anticipatory repudiation is when one party to a contract indicates that they will not perform their duties under the contract before the time for performance arrives. This gives the other party an immediate right to damages for total breach and discharges their remaining duties of performance.
For example, if a company agrees to deliver goods to another company on a certain date, but then tells the other company that they will not be able to deliver the goods on that date, this would be an anticipatory repudiation. The other company can then choose to treat this as an immediate breach and sue for damages, ignore the repudiation and wait for the specified time of performance, or cancel the contract.
Another example of anticipatory repudiation is if a contractor tells a homeowner that they will not be able to complete a construction project on time, even though the contract specifies a completion date. This would give the homeowner the right to sue for damages for total breach.
Overall, anticipatory repudiation is a serious breach of contract that can have significant consequences for both parties involved.