What is Anticipatory Repudiation (or expected breach of contract by the other side)?
Anticipatory repudiation occurs in contracts where one party to a contract thinks the other side is going to breach the contract. For example, the seller of real estate may say that they are refusing to go through with the sale before the actual closing date. It can apply is most any contract setting like real estate, business, commercial, employment and others. So, what is it and what can you do?
While an actual breach of contract cannot occur until the time for performance has arrived, an anticipatory repudiation of the contract, or anticipatory breach, occurs before performance is due under the contract. City of Solano v. Vallejo Redevelopment Agency (1999) 75 Cal.App.4th 1262, 1275-1276. A party anticipatorily breaches a contract expressly by unequivocally refusing to perform, or impliedly by conduct where the party makes substantial performance of his promise impossible. Id at 1275-1276; Taylor v. Johnston (1975) 15 Cal.3d 130, 137.
If the other party to the contract has made it very clear that they will not be able to meet their contractual obligations in the future obligations, then there may be an anticipatory breach of contract claim. Since there are various types of anticipatory repudiation and various legal elements, an experienced contract lawyer can help.
There are related legal concepts like unilateral mistake of fact, impossibility, frustration of purpose. See our upcoming blogs on each of these related issues and how they may apply to your situation.
An experienced business law and contracts attorney can assist you in determining if, and how, anticipatory repudiation applies to you and can help you to understand the relevant laws that will govern your contract.
If you or the other contracting party may be experiencing an anticipatory repudiation, you need to know if the legal concept applies and how to deal with it. Our experienced California contracts lawyer can help. Contact Brown & Charbonneau, LLP today to schedule a consultation about your contract issues at 714-505-3000