What is anticipatory repudiation?

Anticipatory repudiation is a concept in California contract law that refers to a party’s rejection of their contractual duties before they are due. This type of repudiation occurs when one party to a contract makes it clear that they no longer intend to fulfill their obligations under the contract before their contractual obligations are due. This may be done explicitly, by stating that they no longer intend to fulfill their obligations, or implicitly, through their behavior. Generally, anticipatory repudiation can give the other party to the contract the option to terminate the contract and seek damages.

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