New Enroll for RBI, SEBI & NABARD Intro Class! April 18 at 9:15 PM

    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?
    A Breach of contract Correct Answer Incorrect Answer
    B Remission of contract Correct Answer Incorrect Answer
    C Abandonment of contract Correct Answer Incorrect Answer
    D Anticipatory breach of contract Correct Answer Incorrect Answer

    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.

    Practice Next