If one party makes it clear that a contract will not be performed as it is supposed to be in the future, the party who will suffer from the breach must wait until the time of the breach to have the right to sue for damages.

Question

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If one party makes it clear that they will not perform as agreed in the future, this is called an anticipatory breach. In this situation, the innocent party does not have to wait until the time of the breach to sue for damages. They can sue immediately after the anticipatory breach occurs.

If One Party Makes It Clear That a Contract Will