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Contracts · Anticipatory Repudiation
Sample lesson excerptAnticipatory repudiation requires a clear indication of nonperformance before performance is due. Mere worry is different from an unequivocal refusal. Reasonable insecurity can support an appropriate demand for adequate assurances under the governing rule; unjustified failure to provide them can have repudiation consequences. Retraction has limits once the other party materially relies or treats the repudiation as final.
- anticipatory repudiation
- A sufficiently clear pre-due-date refusal or disabling act indicating nonperformance.
- adequate assurances
- Appropriate assurance of performance sought on legally sufficient grounds for insecurity.
Common trap: Any expression of concern is immediately an irrevocable repudiation.
Example: A seller's clear statement that it will never deliver next month's goods is anticipatory repudiation.
Quick Check
Test the difference between insecurity and a clear refusal.
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