Anticipatory repudiation occurs when one party clearly indicates that they will not perform their contractual duties in the future. Upon proper recognition of anticipatory repudiation, the non-breaching party is relieved from their obligation to perform and can immediately pursue remedies for breach, including damages or seeking performance through alternative means.
For example: If a contractor informs a homeowner that they will not start a renovation project despite a signed contract, the homeowner may hire another contractor without waiting for the project’s scheduled start date.