If a party clearly repudiates future performance, what may the non-repudiating party do?

If a party clearly repudiates future performance, what may the non-repudiating party do?

• A. Ignore and wait for performance.
• B. Treat as breach and sue immediately; may suspend performance.
• C. Abandon the contract without remedy.
• D. Seek only specific performance.

Answer: (B)

Anticipatory repudiation allows the non‑breaching party to respond before performance is due. When one side clearly refuses to perform future obligations, the other party may treat that as a breach and sue for damages immediately. They may also suspend their own performance pending resolution of the contract. This combo—treating the repudiation as breach and seeking damages, with the option to suspend performance—best fits the rule. It’s not appropriate to ignore the repudiation or to insist on only specific performance, and abandoning the contract without remedies isn’t allowed.

Anticipatory repudiation allows the non‑breaching party to respond before performance is due. When one side clearly refuses to perform future obligations, the other party may treat that as a breach and sue for damages immediately. They may also suspend their own performance pending resolution of the contract. This combo—treating the repudiation as breach and seeking damages, with the option to suspend performance—best fits the rule. It’s not appropriate to ignore the repudiation or to insist on only specific performance, and abandoning the contract without remedies isn’t allowed.