When anticipatory repudiation occurs, the nonbreaching party is permitted to bring an action for damages immediately.

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Anticipatory repudiation occurs when one party to a contract indicates, before performance is due, that they will not perform their contractual obligations. In such cases, the nonbreaching party may bring an action for damages immediately, even though performance is not due yet. This is because the anticipatory repudiation is treated as a breach of contract, releasing the nonbreaching party from any further duties of performance under the contract.

When Anticipatory Repudiation Occurs, the Nonbreaching Party Is Permitted to Bring