Arlington breach of contract lawyers can explain the complex concept of anticipatory repudiation. When one party repudiates a contract, the other acquires certain rights.
Types of Repudiation
There are different ways that parties can repudiate contracts. One way is to expressly repudiate the contract. For example, the party may simply say that he or she is not going to complete the deal.
Another way to repudiate a contract is to take certain actions that make it impossible for the other party to fulfill the contract. A party declaring bankruptcy can cause this to occur.
Another way to repudiate the contract is to transfer the subject matter of the contract to someone else. For example, if the party sells the subject matter of the contract to someone else, he or she has repudiated the contract.
Sale of Good Contracts
Arlington breach of contract lawyers can explain that sale of goods contracts must follow special rules. The Uniform Commercial Code governs the sale of goods. The UCC has a particular process that must be followed when dealing with cases of anticipatory repudiation. If a party believes that the other will breach the contract, it can demand adequate assurances. While waiting for these assurances, the party can suspend his or her performance under the contract. If the other party has not provided these assurances for 30 days, the contract is terminated. An exception to this rule is if the only remaining term is payment.
Duty to Mitigate
A common concept for contract disputes is that the plaintiff has the duty to mitigate his or her damages. The plaintiff cannot merely sit back and allow damages to accumulate in the hopes of a large payout. Instead, the plaintiff must take steps to reduce damages, if possible.
For more information on anticipatory repudiation, contact Arlington breach of contract lawyers at Schleifman Law, PLC.