When is anticipatory repudiation applicable and how must it be communicated?

• A. Only after performance is due and must be in writing.
• B. When a promisor repudiates before performance is due; clear and unequivocal statement or conduct, communicated to promisee, third-party beneficiary, or assignee.
• C. Any expression of doubt about performance.
• D. Only through a formal notice to the court.

Answer: (B)

Anticipatory repudiation happens when a promisor clearly communicates before performance is due that they will not perform, or engages in conduct that makes performance impossible, and that communication is to the party entitled to performance (the promisee) or to someone with rights under the contract such as a third-party beneficiary or an assignee. It does not have to be in writing; verbal statements or behavior can qualify if they are unequivocal. When this pre-due repudiation is made to the right recipient, the non‑repudiating party may treat the contract as breached and sue for damages or suspend their own performance. A mere doubt about whether performance will occur isn’t enough to trigger anticipatory repudiation, and there’s no requirement to send formal court notice.