In short
Anticipatory repudiation occurs when one party clearly indicates, before performance is due, that it won't perform. The other party can treat it as a breach immediately and sue, or wait for performance.
Key takeaways
- The repudiating party can retract before the other party has relied on the repudiation or said it is final.
- Under the rules for sales of goods, a party with reasonable grounds for insecurity can demand adequate assurance of performance.
- The non-breaching party must still take reasonable steps to limit its losses.
Where it's tested
REG: Business Law: Contracts — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Before performance is due, a seller clearly tells the buyer that it will not deliver the goods. What may the buyer do?