CH26 - Anticipatory Breach

Question 1

Main Rule: Anticipatory Repudiation

Answer 1

AR occurs when, before performance is due, a party makes
1. an unequivocal and definite stmt that he will commit a total breach, or
2. engages in any conduct that renders that party unable to perform its duties

Question 2

Anticipatory Repudiation Steps

Answer 2

1. has the party repudiated the contract?
2. what are the rights of the non-repudiating party?
3. has the repudiating party retracted his repudiation?

Question 3

What are the rights of the non-repudiating party?

Answer 3

1. suspend performance
2. terminate the contract and sue for breach
3. continue to treat the contract as valid and wait for the time of performance before bringing suit

Question 4

the ability to retract a repudiation terminates when the non-repudiating party:

Answer 4

1. gives notice that it chooses to treat the contract as rescinded or terminated
2. treats the AR as a breach by bringing suit
3. materially changes its position in reliance on the repudiation

Question 5

Request for adequate assurance of performance (RAAP)

Answer 5

if theres rsbl grounds for a party to feel insecure as to whether the other party will perform, a party may request adequate assurance of performance

Question 6

Request for adequate assurance of performance framework

Answer 6

1. rsbl grounds for insecurity
2. demand for adequate assurance of performance
3. failure to provide adequate assurance is a repudiation

Question 7

unequivocal and definite stmt

Answer 7

• must show a parties intent to commit a total breach
• must be made directly to the person who is a party to the contract

Question 8

conduct indicating repudiation

Answer 8

• acts must be voluntary and affirmative
• must make performance actually or apparently impossible

Question 9

reasonable grounds for insecurity

Answer 9

• determined in light of all of the circumstances
• minor breaches may give rsbl grounds for belief that more serious breaches will arise
• can arise form indirect communication (3rd party)

Question 10

rsbl grounds for belief of possible repudiation

Answer 10

must have arisen after the time when the conteact was made and cannot be based on fact known to him at that time (contract formation)

Question 11

Demand for adequate assurance of performance

Answer 11

-must be rsbl
- good faith requirement

Question 12

failure to provide adequate assurance

Answer 12

what is adequate depends on what is rsbl given then circumstances of each case