Question
According to the Contract Act which of the following
describes the situation when prior to the due date of performance, the promisor absolutely refuses to perform the contract?Solution
An anticipatory breach of contract is an action that shows one party's intention to fail to fulfill its contractual obligations to another party. The intent to break the contract must be an absolute refusal to fulfill the terms in order for it to qualify as an anticipatory breach. An anticipatory breach is also referred to as an anticipatory repudiation. Parties claiming an anticipatory breach are obliged to make every effort to mitigate their own damages if they wish to seek compensation in court.
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