Anticipatory breach:
A) is addressed by U.C.C. Section 2-207, not by the common law
B) requires that a valid contract will not be enforced by the courts because of a subsequent illegality
C) discharges the duties of the non-breaching party and allows that party to sue for damages from the repudiation
D) is prohibited by the U.C.C., but allowed by the common law
E) none of the other choices

Question

Quizplus · Accepted Answer

Anticipatory breach occurs when one party to a contract makes it clear to the other party that they will not or cannot fulfill their contractual obligations. This discharges the duties of the non-breaching party and allows them to sue for damages resulting from the repudiation. This is addressed by common law, and not by U.C.C. Section 2-207, which relates to the battle of the forms. Option B is incorrect because illegality does not always result from anticipatory breach. Option D is incorrect because U.C.C. does not prohibit anticipatory breach. Therefore, option C is the correct answer.

Anticipatory Breach