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  2. Anticipatory repudiation refers to a situation where one party to a contract indicates that they will not perform their obligations under the contract. Examples of anticipatory repudiation include12:
    • In the construction industry, if a contractor explicitly informs the client that they will not complete a project, it constitutes anticipatory repudiation. The client can then seek damages or find a replacement contractor.
    • If a supplier fails to deliver essential components as per a supply agreement, it could be considered anticipatory repudiation.
    • A seller provides an unequivocal communication that goods will not be delivered unless a buyer agrees to a price increase.
    • A seller indicates that it will halt production of goods that it is contractually obligated to supply (for instance, because a manufacturing facility has been shut down, a business division has been shuttered, etc.).
    Learn more:

    Several real-world examples help illustrate anticipatory repudiation:

      amazelaw.com/anticipatory-repudiation/

      Some common examples of anticipatory repudiation include:

      • A seller provides an unequivocal communication that goods will not be delivered unless a buyer agrees to a price increase.
      www.quarles.com/newsroom/publications/supply-c…
       
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