Contracts & ExecutionQuestion 808 of 1605
A general contractor unequivocally tells the owner two weeks before the start date, 'We will not be doing your project at all.' This statement is an example of:
a.An anticipatory breach (anticipatory repudiation)
b.A minor breach
c.A permissible rescission
d.A valid change order
Explanation
When a party clearly and unequivocally indicates before performance is due that they will not perform, it is an anticipatory breach, or anticipatory repudiation. The injured party may treat the contract as breached immediately and pursue remedies without waiting for the performance date. This is not a mere minor breach, not a mutually agreed rescission, and not a change order.
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Related questions on this topic
- A material breach of contract is best described as a failure to perform that:
- The primary goal of compensatory ('expectation') damages for breach of a construction contract is to:
- After a contractor breaches, the owner has a legal 'duty to mitigate' damages, which means the owner must:
- The doctrine of 'substantial performance' generally allows a contractor who has performed in good faith with only minor, non-material defects to:
- Specific performance, a remedy that compels a party to actually perform the contract, is most commonly granted in disputes involving:
- Rescission as a contract remedy means:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)