Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract was made on April 1 with the trip to begin on June 1. On May 1, Kevin notified Jim that he had changed his mind and would be unable to make the trip. He also refused to pay Jim any compensation. In this case:
A) because the contract is executory, Jim has suffered no damages, and Kevin has no obligation to pay any compensation.
B) Kevin has anticipatorily repudiated the contract and is immediately liable to Jim for damages.
C) Jim must wait until June 1 to see if Kevin will perform his contractual duties and, if he does not, then Jim may sue Kevin for damages.
D) Jim must try to find "cover" to replace the breached contract, and if he is not able to do so before June 1, then Kevin is liable to Jim for damages.

Question

Quizplus · Accepted Answer

Kevin's notification to Jim that he has changed his mind and will not be making the trip, coupled with his refusal to pay any compensation, constitutes anticipatory repudiation of the contract. This makes Kevin immediately liable to Jim for damages, as Jim can now seek remedies for breach of contract without having to wait until the contract's start date.

Jim Contracted with Kevin to Serve as a Guide for Kevin