Anticipatory Repudiation

From the Latin anticipatory (Latin: "acting before"); repudiation (Latin: "to reject").

In one sentence

One party clearly indicates before performance is due that it will not fulfill its contract obligations.

Plain English

Anticipatory repudiation is when someone tells you before the deadline that they're not going to do what they promised—they're basically quitting early. Instead of waiting until the performance date to see if they actually fail, you can treat the contract as broken right then and there. This lets the other party immediately seek damages or find a replacement without having to wait and hope the breaching party changes their mind.

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Example

You hire a contractor to build a deck in June, but in April the contractor emails saying they've taken another job and won't be available. That's anticipatory repudiation, and you can immediately hire someone else and potentially sue for damages.

Used in a sentence

“The buyer's announcement that it would not accept the shipment constituted anticipatory repudiation, allowing the seller to cancel the order.”

Related terms

Contract

A legally binding agreement between two or more parties to do or not do something.

Performance

The act of doing what a contract requires, such as delivering goods or paying money.

Breach

A failure to do what a contract requires, such as not paying or not delivering.

Damages

Money awarded by a court to compensate a party for losses caused by a breach or wrongdoing.

Rescission

Unwinding a contract entirely, returning both parties to their positions before the deal.

Mitigation of Damages

A duty to take reasonable steps to minimize losses caused by another party's breach.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.