anticipatory breach


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anticipatory breach

n. when a party to a contract repudiates (reneges on) his/her obligations under that contract before fully performing those obligations. This can be by word ("I won't deliver the rest of the goods" or "I can't make any more payments") or by action (not showing up with goods or stopping making payments). The result is that the other party does not have to perform his/her obligations and cannot be liable for not doing so. This is often a defense to a lawsuit for payment or performance on a contract. One cannot repudiate his obligations and demand that the other person perform. (See: breach, contract)

References in periodicals archive ?
Furthermore, after applicant provided a copy of the Chester decision in its supplemental memorandum on March 30th, 2010, respondent did not submit any distinguishing legal authority undercutting the holding of that decision that the accrual date of the claim for statute of limitations purposes either when the claim is denied by respondent in the nature of an anticipatory breach of contract, or the end of the 30-day period calculated after a health care provider submits proof of claim, whichever is later.
They may be deprived of their right to sue for damages where a subsequent event renders contractual performance impossible between the date of accepting the anticipatory breach and the date fixed for performance under the contract.
In the earlier proceeding, the board remanded the case to the parties to determine the amount of damages for the government's anticipatory breach.