What is a key limitation on retracting anticipatory repudiation?

• A. Repudiation may be retracted until the promisee acts in reliance on the repudiation, signifies acceptance, or commences an action.
• B. Repudiation may be retracted only if the other party consents.
• C. Repudiation cannot be retracted once communicated.
• D. Repudiation can be retracted only by a new contract.

Answer: (B)

The main idea being tested is that retracting anticipatory repudiation is not automatic; it requires the other party’s consent. When one party clearly indicates they won’t perform, the other party is put in a position to treat that repudiation as a breach. If the repudiating party later tries to backtrack, the contract’s status and the other party’s expectations can be disrupted, so consent is needed to restore the contract to its prior state. This protects the non-repudiating party from being blindsided by a unilateral reversal of the repudiation. The other statements either describe reliance-based effects, claim retraction is impossible, or require a new contract, none of which captures the standard limitation that consent is required to retract.