Anticipatory Breach

In contract law, an action that shows a party's intention to fail to perform or fulfill its contractual obligations to another party. An anticipatory breach negates the counterparty's responsibility to perform its requirements under the contract. By demonstrating a party's intention to breach, the counterparty may also begin legal action.

Also referred to as an "anticipatory repudiation."

An anticipatory breach occurs when a party demonstrates its intention to break a contract. However, vocal or written confirmation is not required, and failure to perform an obligation in a timely matter can result in a breach. By declaring an anticipatory breach, the counterparty may begin legal action immediately rather than waiting until a contract's terms are actually broken.

For example, if Company A refuses to pay substantial interim payments to Company B, Company B can begin legal action due to anticipatory breach. Company B could also stop performing its contractual obligation, potentially saving time and or money.

Investment dictionary. . 2012.

Look at other dictionaries:

  • anticipatory breach — see breach 1b Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. anticipatory breach …   Law dictionary

  • anticipatory breach — ➔ breach1 * * * anticipatory breach UK US noun [C] ► LAW the act of breaking a contract before it comes into effect, by refusing to do what the contract says or by making yourself unable to do what it says: »He is waiting to see if the… …   Financial and business terms

  • anticipatory breach — noun a breach of contract committed prior to the time of required performance • Syn: ↑constructive breach • Hypernyms: ↑breach of contract …   Useful english dictionary

  • anticipatory breach —    The repudiation of obligations by one party to a contract before the obligations have been fully performed. This releases the other party from his or her contractual obligations; one party cannot simultaneously repudiate obligations and demand …   Business law dictionary

  • anticipatory breach — A breach of contract committed before the time for performance has arrived, being the outcome of words or acts evincing an intention to refuse performance in the future, that is words or acts in repudiation or renunciation of the contract. 17 Am… …   Ballentine's law dictionary

  • anticipatory breach of contract — n. A breach of contract that occurs when one party announces before the time scheduled for performance that he or she will not perform according to the contract. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy …   Law dictionary

  • anticipatory breach of contract — The assertion by a party to a contract that he or she will not perform a future obligation as required by the contract. Such occurs when a party to an executory contract manifests a definite and unequivocal intent prior to time fixed in contract… …   Black's law dictionary

  • breach of contract — breach of contract: breach (1b) Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. breach of contract …   Law dictionary

  • Anticipatory repudiation — (or anticipatory breach) is a term in the law of contracts that describes a declaration by one party (the promising party) to a contract that they do not intend to live up to their obligations under the contract. Where such an event occurs, the… …   Wikipedia

  • breach — / brēch/ n 1 a: a violation in the performance of or a failure to perform an obligation created by a promise, duty, or law without excuse or justification breach of duty: a breach of a duty esp. by a fiduciary (as an agent or corporate officer)… …   Law dictionary

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