Before the date fixed for performance, X unequivocally tells Y that X will NOT perform the contract at all. Under Section 39 of the Indian Contract Act, 1872, Y (the promisee) may:

Section 39 of the Indian Contract Act deals with ANTICIPATORY BREACH: where a party to a contract refuses, the promisee is entitled either to treat the contract as rescinded and immediately claim damages for the breach, or to keep the contract alive and wait for performance till the time fixed. The innocent party need not wait till the expiry of the time of performance if the promisor has absolutely repudiated. This immediately-accruing right of action is the practical danger of an anticipatory repudiation. The election lies with the promisee, not the defaulting promisor.