Anticipatory repudiation Flashcards
When does anticipatory repudiation occur ?
When there is a an unequivocal manifestation by one party to the other that the other party cannot or will not perform its obligation under the contract.
The statement is made before the repudiation party’s performance is due.
Other party’s remedy to anticipatory repudiation?
The other party may wait for a reasonable time for performance to begin or resort to any remedy for breach of contract.
when does Prospective inability to perform occurs
This occurs when a party has reasonable grounds for insecurity that the other party is unable or unwilling to perform. (this is doubt).
What can the other party do for prospective inability to perform .
Under the UCC, the party may then, in writing , demand adequate assurances of performance, and until she received such assurance may suspend her performance. If such assurance is not given within a reasonable time , not exceeding 30 days, the other party may treat is as repudiation.
Retracting repudiation
The party who has repudiated can retract his repudiation unless the other party cancelled the contract, materially changes his position in reliance on the repudiation or indicated that she considers the repudiation to be final.
