What is an anticipatory breach of contract?

An anticipatory breach of contract is a situation in which one of the parties involved in a contract indicates that they will not fulfill their obligations under the contract before the contract deadline. This indicates that the party has already decided to breach the contract before the agreed date. In Maine, an anticipatory breach of contract can be established in a variety of ways, including a verbal or written statement, a clear disregard of the contract obligations, or a failure to take steps necessary for contract performance. In many cases, the party who commits the anticipatory breach will be found liable for damages, as if the contract was actually breached. The non-breaching party may also be able to seek injunctive relief to stop the party from completing the breach or to prevent any further damage. In some cases, the party who commits the anticipatory breach may be able to undo the breach or mitigate the damages. But, the non-breaching party must still receive compensation for the breach, even if the anticipatory breach is later undone. In Maine, the courts take anticipatory breach of contract seriously and will generally award damages to the non-breaching party. This is done to ensure that all parties to a contract are able to rely on the contract, even if one party declares that they will not adhere to the terms of the agreement.

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