anticipatory repudiation

Repudiation of a contractual duty before the time for performance, giving the injured party an immediate right to damages for total breach, as well as discharging the injured party’s remaining duties of performance.

• This type of repudiation occurs when the promisor unequivocally disavows any intention to perform when the time for performance comes. Once the repudiation occurs, the nonrepudiating party has three options: (1) treat the repudiation as an immediate breach and sue for damages; (2) ignore the repudiation, urge the repudiator to perform, wait for the specified time of performance, and sue if the repudiating party does not perform; and (3) cancel the contract.

— Also termed renunciation. See anticipatory breach under BREACH OF CONTRACT. [Cases: Contracts 313. C.J.S. Contracts § 534.]


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