Anticipatory repudiation or anticipatory breach is a term in the law of contracts that describes a declaration by the promising party to a contract that he or she does not intend to live up to his or her obligations under the contract.

What is a repudiation of a contract?

Repudiation of a contract occurs where one party renounces their obligations under a contract. It can be that they are unwilling or unable to perform their obligations under a contract. ... A party's conduct can also amount to an act of repudiation.

Which is an example of a repudiation?

When it comes to repudiation, actions speak as loudly as words. For example, let's say a couple was supposed to repay two loans from the profits of their business. Instead, the couple ran the business into the ground, incurring lots of other debts and making it impossible to pay back their original loans.