What is anticipatory repudiation?

Anticipatory repudiation is a concept in contract law that occurs when one party to a contract indicates that they will not fulfill the obligations of the contract before the time for performance has arrived. This can be done explicitly by saying that they do not intend to fulfill the contract, or implicitly by taking action that shows they will not fulfill the contract. This can also happen when one of the parties delays performance of the contract for an unreasonable amount of time. In Virginia, an anticipatory repudiation of a contract can be used as a defense to breach of contract claims, meaning that if one party has repudiated the contract, then the other party can no longer be held legally responsible for not fulfilling the contract. If a party repudiates the contract, the other party may be able to sue for damages, but they may also choose to terminate the contract and seek other remedies.

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