When a party commits an anticipatory breach, the nonbreaching party ________.
A) must wait until the performance was due before suing
B) is immediately discharged from his or her own duties
C) cannot seek damages because he or she received advance notice of the breach
D) loses his or her right to sue after the due date for performance is reached

Question

Quizplus · Accepted Answer

When a party commits an anticipatory breach, the nonbreaching party is immediately discharged from his or her own duties. This means that the nonbreaching party no longer needs to perform his or her obligations under the contract and can immediately bring an action for damages against the breaching party. Option A is incorrect because the nonbreaching party is not required to wait until the performance was due before suing. Option C is incorrect because the nonbreaching party can still seek damages despite receiving advance notice of the breach. Option D is incorrect because the nonbreaching party does not lose his or her right to sue after the due date for performance is reached.

When a Party Commits an Anticipatory Breach, the Nonbreaching Party