Sid and Tony enter a contract for a sale of Sid's collection of electric guitars. Before the time for performance, Sid tells Tony that he does not want to deliver the guitars. Anticipatory repudiation is
A) a breach of contract.
B) a compromise between two parties who are unable to perform.
C) a remedy available only to a breaching party.
D) a remedy available only to a nonbreaching party.

Question

Quizplus · Accepted Answer

Anticipatory repudiation occurs when one party communicates to the other party before the time of performance that they will not fulfill their obligations under the contract. This communication is considered a breach of contract and gives the nonbreaching party the right to terminate the contract and claim damages.

Sid and Tony Enter a Contract for a Sale of Sid's