Repudiation

Question 1

How may a party establish anticipatory repudiation?

Answer 1

Anticipatory repudiation may be established by either
1. Party’s definitive statement that it will breach
2. a party’s voluntary act that renders the party unable to perform

Question 2

What may an insecure party do if anticipatory repudiation cannot be established, but reasonable grounds for insecurity still exist?

Answer 2

Insecure party may make a demand for adequate assurance of performance

Question 3

When may a party suspend their performance after asking for adequate assurance of performance?

Answer 3

After a party’s demand for assurance, they can suspend their own performance if commercially reasonable

Question 4

When is failure to respond with reasonable assurance a repudiation

Answer 4

Failure to respond with reasonable assurance regarding performance within a reasonable time under common law, or 30 days under the UCC is a repudiation

Question 5

What are rights of an aggrieved party upon repudiation?

Answer 5

1. Cancel the contract and terminate all rights and obligations under it
2. Bring an action for damages or specific performance
3. ignor repudiation and continue performance

Question 6

For how long is retraction of a repudiation by repudiating party available?

Answer 6

1. Until other party acts in reliance on repudiation
2. until other party accepts repudiation by signaling acceptance of repudiation to breaching party
3. until other party commences suit for damages or specific performance