What constitutes an anticipatory repudiation of a contract?

British Columbia, Canada


The following excerpt is from Anabtawi v. Claudia Alan Inc., 2021 BCCRT 1139 (CanLII):

19. An anticipatory breach occurs when one party shows through words or conduct an intention not to perform or be bound by the agreement in the future. An anticipatory breach is considered an anticipatory repudiation if it would deprive the non-breaching party of substantially the whole benefit of the contract. See Kaur v. Bajwa, 2020 BCCA 310 at paragraphs 13 and 14.

20. The non-breaching party may choose to accept the repudiation to end the contract and sue for damages immediately. Alternatively, the non-breaching party may affirm the contract and keep it “alive” for both parties, and risk committing a breach of its own. However, if the party repudiates the contract again, or if the repudiation is continuing, the non-breaching party may subsequently elect to accept the repudiation or affirm the contract. See Dosanjh v. Liang, 2015 BCCA 18, at paragraphs 33 to 37 and 42 to 43.

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