What is an anticipatory breach of contract?

An anticipatory breach of contract is when a party to a legally binding agreement decides to not fulfill their obligations before the contractual deadline. This is also known as “anticipatory repudiation.” In California, an anticipatory breach occurs when one party expressly states that they’re not going to fulfill the contract and gives clear indications that they intend to break the agreement before the term ends. Additionally, it can occur when one party acts in a way that shows they’ll not perform their duties according to the contract. This includes failure to provide desired goods and services or sending a letter or communication indicating that they’re not going to honor the agreement. When this happens, the non-breaching party can claim breach of contract and seek compensation for any damages or losses.

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What is an anticipatory breach of contract?

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