What is an anticipatory breach of contract?

An anticipatory breach of contract occurs when one party to a contract communicates to the other party that they will not be able to fulfill their end of the agreement. The anticipatory breach occurs before the actual breach, which would usually happen after the agreement has been breached and one party does not fulfill their obligations. In Virginia, an anticipatory breach gives the non-breaching party the ability to take legal action to recover money damages or other remedies for the breach. For example, if one party to an employment contract communicates to the other that they do not intend to fulfill their promises, then the employer can pursue legal action to recover damages for any losses suffered due to the anticipatory breach. An anticipatory breach is also referred to as an anticipatory repudiation, which is an effective communication of repudiation of the contract before its performance is due.

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What is an anticipatory breach of contract?

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