FILL IN THE BLANKS. When a party clearly and unequivocally anticipatorily repudiates its contractual obligations, the other party _______ ignore the repudiation and demand that the repudiating party perform _______________________.

• A. may, as called for in the contract
• B. may, immediately
• C. must, as called for in the contract
• D. must, immediately

Answer: (A)

Anticipatory repudiation gives the non‑breaching party the right to enforce the contract’s terms despite the other side’s clear refusal to perform. In this situation, the non‑repudiating party may insist that the repudiating party fulfill the obligations exactly as the contract requires. That means demanding performance in the manner and on the timeline specified by the agreement, rather than accepting the repudiation or treating it as an automatic, immediate termination. The key idea is that the contract still governs the expected performance, and the non‑breaching party can pursue that performance under the contract's own terms. The other options imply immediate or mandatory action that isn’t necessarily required by anticipatory repudiation rules, which is why the correct choice is that the non‑breaching party may demand performance as called for in the contract.