Toy Tech (TT)has ordered 50,000 aluminum widgets from the Acme Widget Corporation (AWC)with delivery to be made on November 1.These widgets will be used in TT products to create toys for the holiday season.Under which circumstance may TT claim an anticipatory repudiation?

Question

Quizplus · Accepted Answer

Anticipatory repudiation occurs when one party to a contract indicates before the time for performance arrives that they will not perform their contractual obligations. In this case, if AWC's manufacturing plant burns down and they insist that they will still honor the contract, there is no anticipatory repudiation. However, if they indicate that they cannot fulfill the contract due to the fire, then TT may claim anticipatory repudiation. Choices A, B, and D do not meet the criteria for anticipatory repudiation as they are not indications from AWC that they will not fulfill the contract.

Toy Tech (TT)has Ordered 50,000 Aluminum Widgets from the Acme