Anticipated breach is when one party explicitly or implicitly states they will not perform a contract, releasing the other party from the contract. The performing party may sue for damages. Anticipatory repudiation is also known as early breach. Consult a lawyer if a contract needs to be broken.
An anticipated breach is a form of breach of contract in which one party makes it unequivocally clear that they will not perform the contract. By law, the other party is released from the contract, as failure to comply with the contract renders the contract void. Additionally, the performing party who has not breached the contract may be able to sue for damages in violation of contract laws, even though the contract may not have been officially in default yet.
There are several ways in which an advance breach can occur. One way is for one party to explicitly state that they will not perform the contract, such as when a grocery store supplier states that they will no longer deliver. Notification can also take place via actions. For example, if a contractor sells his tools, this renders the contractor unable to work and could be considered a breach of any outstanding building contracts because it is clear the contractor has no intention of fulfilling them. Failure to pay may also constitute an anticipated breach.
Under the law, the person who committed the breach cannot turn around and sue the other party for not fulfilling the contract. In the example with the contractor above, for example, once the anticipated breach has occurred, the contractor cannot then go to a homeowner and sue for non-payment, because the contractor has breached the contract and thus the homeowner is no longer required to abide by or its end of the agreement.
This concept is also known as anticipatory repudiation. People should be careful, as it is possible to run into an early breach. For example, if someone asks for assurances that a contract will be performed and such assurances are not given, this could be treated as a pre-emptive breach, on the grounds that lack of evidence is tantamount to indicating that the contract will be broken.
If a contract is to be broken, it is advisable to consult a lawyer. The attorney can review the terms of the contract and provide information on the best way to break it. Sometimes, the other party may be willing to renegotiate terms to deal with a change in the situation, especially if the violating party makes it clear that they are engaged in a good-faith effort to meet as many terms as possible.
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