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Top view of a business meeting in progress
Top view of a business meeting in progress
In the paragraphs below, an experienced Fort Lee business attorney discusses anticipatory repudiation in contract law.

What It Means

Anticipatory repudiation is a form of breach of contract. In a contract, two individuals, companies or other entities have entered into a formal agreement that imposes specific terms and requires certain actions of each party. If one of the parties informs the other that he or she will not abide by the agreement, fulfill the requirements or uphold the terms, anticipatory repudiation has occurred.

The Court’s Perspective

For the court to acknowledge anticipatory repudiation, there can be no qualifying language to cloud the intent of the repudiating party. The declaration must be made in clear, unconditional terms that the party refuses to uphold the contract. If, by some action or statement, the repudiating party makes fulfillment of the contract impossible, this is also anticipatory repudiation.

Taking It Back

Anticipatory repudiation can be undone if the non-repudiating party has taken no steps in response to the repudiation. Once such steps have been taken and the other party’s position is altered, retraction is no longer a possibility.

Requesting Assurance

Someone who believes that the other party in the contract will not uphold the terms can require the second party to provide a statement that assures that the terms will be met. There is a 30-day time limit within which these assurances must be made. If they are not forthcoming, the contract is no longer in effect. If goods are involved, the above holds according to the Uniform Commercial Code.

Your Fort Lee Business Law Firm Can Help

If you require assistance in an anticipatory repudiation matter, you should seek the services of a skilled Fort Lee business attorney. Contact Kevork Adanas, P.C. at 201-592-9190 today.

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