Contract Glossary
Anticipatory Breach
Definition
When one party clearly communicates, through words or actions, that they will not perform their contractual obligations before the performance is actually due. Also called anticipatory repudiation. The non-breaching party doesn't have to wait until the deadline passes to take action; they can treat the contract as breached immediately and seek remedies.
In Practice
You hired a contractor to renovate your office by March 1. On January 15, the contractor emails saying they've taken on too many projects and won't be able to start yours at all. That's anticipatory breach. You don't have to wait until March 1 to react, you can immediately hire another contractor and sue the original one for the price difference. The key is that the refusal must be clear and unequivocal. Saying 'I might have trouble meeting the deadline' isn't anticipatory breach; saying 'I will not perform this contract' is.
Example Clause
If either Party communicates, through express statement or conduct, an unequivocal intention not to perform its material obligations under this Agreement before the date performance is due, the other Party may treat such communication as a material breach and exercise all remedies available under this Agreement or at law, including termination and recovery of damages.
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