Anticipatory Repudiation Flashcards
What is the idea behind anticipatory repudiation?
The idea of anticipatory repudiation is to avoid forcing a non-repudiating party to stand by and wait for the breach.
What are the two options for a promisee in cases of anticipatory repudiation?
- Promisee may wait for a commercial reasonable time and suspend own performance
- Promisee may sue and suspend own performance
If a promisee waits for performance and chooses to continue to perform . . .
the promisee must discontinue performance if it increases the damges to the promisor.
Although the promisor is not required to make a tender or hold themselves ready to make a tender . . .
it may be required to show that, but for the repudiation, they had the abolity to perform.
Where is anticipatory repudation applicable?
Anticipatory repudiation is applicable where a promisor repudiates a promise before the time for performance is due.
Repudiation must be . . .
clear and unequivocal, not mere uncertainty/insecurity.
Repudation may be done by . . .
voluntary conduct or words.
If repudiation is a statement, who must it be made to?
The promisee, a third-party beneficiary, or to an assignee of the promisee.
What section governs anticipatory repudation?
2-610
What are the promisee’s rights under the right to adequate assurance?
If the party had reasonable grounds for insecurity and provides a written demand for adequate assurance, the contract is repudiated if the promisor does not provide adequate assurance in 30 days.
What section governs the right to adequate performance?
2-609
After demanding adequate assurance of performance, the promisee may . . .
suspend its own performance until assurance is provided.
What section governs retraction of anticipatory repudiation?
2-611
