When one party clearly sees that the other contracting party will either not perform a substantial part of the contract,this is a:
A) Breach of contract.
B) Anticipatory Breach.
C) Impossibility of performance.
D) Force Majeure.

Question

Quizplus · Accepted Answer

This situation is known as anticipatory breach, where one party anticipates that the other party is going to breach the contract. It allows the non-breaching party to terminate the contract and seek damages. Option A, breach of contract, refers to a situation where a party has already failed to perform their obligations. Option C, impossibility of performance, refers to a situation where performance of the contract becomes impossible due to unforeseen events. Option D, force majeure, refers to an event outside the control of the contracting parties that makes performance of the contract impossible. None of these options fit the given scenario as the non-breaching party is anticipating a breach.

When One Party Clearly Sees That the Other Contracting Party