If A mistakenly believes he has a right to terminate his contract with B but in fact he does not have that right, he risks being in repudiatory breach.

Question

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If A mistakenly believes he has a right to terminate the contract with B and acts on that belief by attempting to terminate the contract, A may be committing a repudiatory breach. This is because A is refusing to perform his obligations under the contract based on a mistaken belief, thereby giving B the right to claim that A has fundamentally breached the contract.

If a Mistakenly Believes He Has a Right to Terminate