On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is:
A) a material alteration.
B) anticipatory repudiation.
C) a nonmaterial breach since the statement is made before December 31.
D) an accord.

Question

Quizplus · Accepted Answer

Anticipatory repudiation occurs when one party to a contract informs the other party in advance of the time for performance that they will not be fulfilling their contractual obligations. Paula's statement to Roberta clearly indicates an intention not to perform her duties under the contract, thus constituting anticipatory repudiation.

On November 1, Paula and Roberta Enter into a Contract