An entrepreneur contracts with a supplier for delivery of equipment crucial for opening a retail store. Two weeks before the agreed delivery date, the supplier notifies the entrepreneur that the equipment will not be delivered at all. What best describes the supplier's notification?
The supplier's clear and unequivocal statement that they will not perform the contract constitutes an anticipatory repudiation. Anticipatory repudiation occurs when one party to a contract indicates, through words or actions, that they will not perform the contract obligations before the performance is due. The entrepreneur may treat this as a breach and pursue remedies. Other answers are incorrect because an anticipatory repudiation occurs before the duty to perform arises, and it differs from a material or partial breach, which happen during or after the time performance is due.
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What is anticipatory repudiation in contract law?
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How does anticipatory repudiation differ from a material breach?
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