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Contracts • Excuse of Non-Performance
K#122
Legal Definition
A party that anticipatorily repudiates can withdraw their repudiation as long as the non-breaching party: (1) has made no material change in position, and (2) has not indicated that they consider the repudiation final. If timely retracted, the duty to perform is reimposed, but performance may be delayed until adequate assurances are provided.
Plain English Explanation
When a party anticipatorily repudiates, it means they have given a clear indication to the other party that they have no intention or ability to fulfill their obligations under the contract. If at some point circumstances change, and they change their mind, they may be able to retract their repudiation as long as the other party hasn't either (a) relied on expecting the breach, or (b) accepted the repudiation as final.
In other words, when someone makes it clear they plan on breaching their contract, they will only be allowed a "do-over" to retract their plan to breach if the other party hasn't already put into motion backup plans as a result of having to deal with the fact that they believed a breach was going to occur.
In other words, when someone makes it clear they plan on breaching their contract, they will only be allowed a "do-over" to retract their plan to breach if the other party hasn't already put into motion backup plans as a result of having to deal with the fact that they believed a breach was going to occur.
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