What is an anticipatory breach of contract?

An anticipatory breach of contract occurs when one party to the contract makes it clear that they no longer plan on fulfilling their obligations under the contract. This can occur in a variety of ways, including failing to perform when required, communicating that they will not comply with the contract, and/or failing to provide adequate consideration to fulfill the contract. In Michigan, anticipatory breach of contract is a legal concept that requires one party to fulfill their obligations under the contract until the other has either formally repudiated the contract or shown an “unwillingness or inability” to fulfill their side of the bargain. For example, if one party to a contract fails to provide payment for goods or services, the other party may be able to terminate the contract early and seek damages for the breach. Additionally, if one party anticipates that the other will not fulfill their obligations, they may be able to seek damages for the anticipated breach. In Michigan, this can be done by filing a claim in court. The court will then consider the facts of the case and determine whether the other party is likely to breach the contract. If they do, the court may order damages to be paid by the breaching party.

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What is an anticipatory breach of contract?

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