What is an anticipatory breach of contract?

An anticipatory breach of contract, also known as an anticipatory repudiation, occurs when one party to a contract informs the other that they will be unable to fulfill their obligations under the contract before the time for performance has arrived. In South Carolina, when one party anticipatorily breaches a contract, the other party may choose to immediately treat the contract as if it has been breached and follow the normal steps associated with contract disputes. For example, if one party to a contract informs the other party that they will not be able to fulfill their obligations under the contract, the other party may choose to file a claim in court for breach of contract. This claim may seek damages to compensate them for any losses they have incurred due to the breach. Additionally, the non-breaching party may also seek equitable remedies, such as an injunction, to prevent the breaching party from engaging in further conduct that may breach the contract. As in other states, South Carolina law provides a non-breaching party with timely notice of an anticipatory breach in order to allow them to protect their rights and interests under the contract. Additionally, South Carolina law also provides that a non-breaching party can recover attorney’s fees and costs in a court action for breach of contract. As such, if you suspect that another party to a contract will not be able to fulfill their obligations under the contract, it is important to seek legal advice to ensure that your rights are protected.

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