Anticipatory REpudiation

Anticipatory repudiation occurs when a party clearly communicates, before performance is due, that they are unwilling or unable to perform under the contract. The nonbreaching party may then: (1) treat the repudiation as an immediate breach and sue at once, (2) suspend performance and wait until performance is due before suing, (3) treat the repudiation as a mutual rescission and regard the contract as discharged, or (4) ignore the repudiation and urge the other party to perform.