MBE Rules · Contracts
Anticipatory repudiation
The rule
An unequivocal statement or voluntary act before performance is due that the party will not perform constitutes anticipatory repudiation. The non-breaching party may (1) sue immediately, (2) suspend performance, OR (3) wait and urge performance. Mere doubt or insolvency is not repudiation — but may justify a demand for assurances under UCC §2-609.
In plain English
If one party clearly says or shows they won't fulfill their future contract duties, the other party can take action like suing or waiting to see if they change their mind.
Worked example
The buyer tells the seller they won't pay for the goods due next month. The seller can sue now, stop delivering, or wait to see if the buyer changes their mind.
Memory hook
Repudiate? Act or Assert, not Assume. Clear refusal before due date lets you sue, pause, or persuade.
The trap
Students think: mere doubt or financial trouble equals repudiation. Wrong, because doubt allows for assurance demands, not immediate breach action. The actual test is unequivocal refusal.
How examiners test it
The MBE loves: party expresses doubt or faces financial issues before contract date. Trap: students assume this is repudiation. Key: look for clear refusal or act indicating non-performance.
Drill this rule until it can't fail you.
Vrenberg generates unlimited questions on this exact rule, tracks your mastery of it, and brings it back until it sticks.