Does a declaratory relief action contesting the validity of a Lease that was invalid constitute an anticipatory breach?

California, United States of America


The following excerpt is from McAlister Invs., Inc. v. Thomas, G056330 (Cal. App. 2019):

Plaintiff contends its "position [that the Lease was invalid] would have constituted an anticipatory breach" if "[d]efendants prevailed in proving that the Lease was valid, and [p]laintiff was required to honor the terms of the Lease." But the filing of a declaratory relief action contesting the validity of an agreement does not constitute an anticipatory breach. Instead, a declaratory relief action "serves to set controversies at rest before they lead to repudiation of obligations." (Babb v. Superior Court (1971) 3 Cal.3d

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