Penelope agrees to sell 100 pounds of sugar to Vito in June. In May, Penelope discovers there is a major sugar shortage and she would have to pay her supplier 1000 times more than expected. She alerts Vito in May that she does not intend to sell him the sugar. This is an example of:
A) Anticipatory repudiation
B) Tendered repudiation
C) Advance refusal
D) Advance repudiation
E) Preparatory refusal

Question

Quizplus · Accepted Answer

Anticipatory repudiation occurs when one party to a contract informs the other party that they will not be fulfilling their contractual obligations before the performance is due. Penelope's action of notifying Vito in May that she will not sell the sugar in June is an example of anticipatory repudiation.

Penelope Agrees to Sell 100 Pounds of Sugar to Vito