Legal Definitions - anticipatory repudiation

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.