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Simple English definitions for legal terms
anticipatory breach
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A quick definition of anticipatory breach:
Anticipatory breach is when one person in a contract says they won't do what they promised before the time they were supposed to do it. This means the other person doesn't have to do what they promised either. The person who broke the contract can take back what they said, but only if the other person hasn't already acted on it.
A more thorough explanation:
In contract law, anticipatory breach refers to a situation where one party to a contract indicates that they will not fulfill their obligations before the performance is due. This is also known as repudiation. When this happens, the other party is excused from performing their own obligations under the contract.
For example, let's say that John and Jane have a contract for John to deliver 100 widgets to Jane by the end of the month. However, a week before the delivery date, John tells Jane that he will not be able to deliver the widgets. This is an anticipatory breach, as John has indicated that he will not fulfill his obligations before the performance is due.
If Jane chooses to do so, she can now terminate the contract and seek damages from John for any losses she may have suffered as a result of his breach.
It's important to note that a party can retract their anticipatory breach, but only if the other party has not relied on it. In other words, if Jane has already made alternative arrangements for the widgets because she believed that John would not fulfill his obligations, then John cannot retract his anticipatory breach.