CISSP-ISSMP · Question #143
Which of the following terms describes a repudiation of a contract that occurs before the time when performance is due?
The correct answer is C. Anticipatory breach. An anticipatory breach (also called anticipatory repudiation) occurs when one party to a contract declares their intention not to fulfill their contractual obligations before the performance date arrives. This gives the non-breaching party the right to treat the contract as immed
Question
Which of the following terms describes a repudiation of a contract that occurs before the time when performance is due?
Options
- AExpected breach
- BActual breach
- CAnticipatory breach
- DNonperforming breach
How the community answered
(47 responses)- A2% (1)
- B2% (1)
- C91% (43)
- D4% (2)
Explanation
An anticipatory breach (also called anticipatory repudiation) occurs when one party to a contract declares their intention not to fulfill their contractual obligations before the performance date arrives. This gives the non-breaching party the right to treat the contract as immediately breached and seek remedies without waiting for the actual performance deadline. An 'actual breach' occurs when a party fails to perform at the time performance is due. 'Expected breach' and 'nonperforming breach' are not standard legal contract terms.
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