In contract law, anticipatory breach occurs when a party repudiates prior to the date that the performance is due. Anticipatory breach is an excuse for non-performance by the non-breaching party. A party can retract its anticipatory breach provided that the non-breaching party has not relied on it.
Definition from Nolo’s Plain-English Law Dictionary
When a party to a contract declares that he or she will not be performing his or her contractural obligations, either by word (for example, "I won't deliver the rest of the goods") or by action (for example, not showing up with goods or stopping payment). The result is that the other party to the contract is excused from having to complete his or her obligations under the agreement. Anticipatory breach is often a defense to a lawsuit for payment or performance on a contract. One cannot repudiate one's obligations and demand that the other person perform.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:11 pm