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anticipatory breach

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Definition
Unequivocal repudiation of a contract, before the commencement of its performance. An anticipatory breach gives the aggrieved party an immediate legal right to sue for damages as if it were a fundamental breach of contract, and releases it from its obligations under the contract. Two types of anticipatory breaches are: (1) Express repudiation, a clear refusal by a party to perform a contract. (2) Implied repudiation, an act of a party that puts the performance of a contract out of its own power to perform (such as when a party sells off its tools or other assets required in performance of the contract). Also called anticipatory repudiation.