Repudiation requires a definite and unequivocal statement or voluntary act rendering performance impossible. The injured party may treat it as a present breach, await performance, or demand adequate assurance.
Retraction is possible before reliance.
Alternative Names:
Anticipatory Breach|Repudiation
Why it Matters?
Expressions of doubt or requests to renegotiate do not constitute repudiation, and treating them as such produces the breach the responding party sought to avoid. Demanding adequate assurance under UCC 2-609 or its common law analog is the safer response, since failure to provide assurance within a reasonable time then constitutes repudiation. That mechanism converts ambiguity into a definite answer without risk.
Frequently Confused with
Related terms
Frequently asked questions
Do expressions of doubt constitute repudiation?
What is the safer response?
