Anticipatory Repudiation in Contracts

Introduction

• Presenter: Professor Tracy
• Topic: Anticipatory Repudiation as a subtopic of Breach and Repudiation.

Breach and Repudiation

• Breach: Different types include partial, material, and total breaches.
• Repudiation: When a party indicates, before the performance date, that they may not or will not perform.

Example Scenario

• Contract between two parties: Tracy to dog sit from June 19th for $200.
• Order of Performance: Tracy performs first (dog-sitting), payment follows.

Repudiation Details

• Indications of Repudiation:
  • Express doubt or conflict about ability to perform.
  • Statements like "I'm not sure I'll be available."

Options for the Non-Breaching Party

1. Wait and See

   • Pros: Certainty, allows other party to correct faults.
   • Cons: Potential time waste, risk of non-performance, and inability to mitigate.

2. Treat as Repudiation

   • Treat noises or clear statements as repudiation, terminate the contract, and hire someone else.

3. Request Adequate Assurance

   • Explore further details.