Anticipatory Breach

When can the innocent party terminate the contract for anticipatory breach?

There are times when one party to a contract will know that the other has no intention of performing, even though the time for performance has yet to expire, in which case the innocent party may treat the contract as repudiated (bought to an end) as a result of an anticipatory breach of contract.

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A contracting party will be better placed to mitigate its losses if it is aware that the contract will not be performed prior to those obligations falling due. This will allow the innocent party to keep their losses to a minimum.

The key questions that needs to be considered is when can the innocent party terminate the contract for anticipatory breach?

Our expert team will be able to advise you on whether the requirements have been met to enable the contract to be terminated and vice versa if you have had a contract terminated against you, our team can advise you on the whether this was lawful or not.

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