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What counts as an anticipatory breach?

On Behalf of | Jan 14, 2021 | Business Law

You may have heard of the term anticipatory breach before, but it’s usually in the context of an incomplete job. However, an anticipatory breach of contract is one that involves the person hired for the job expressing or showing that they will not start on it. Business owners from Florida to North Dakota can tell you of an event where they had to deal with this situation. But what exactly counts as an anticipatory breach of contract?

What counts as an anticipatory breach of contract?

When dealing with this issue, there are a number of things you can look out for to have solid evidence that an anticipatory breach has occurred. The first one involves the party you hired stating that they are downright refusing to do the job in clear and simple terms. They can take the action of not showing up, which is an anticipatory breach. The list below includes more ways that someone could breach a contract:

  • Taking action that makes it impossible to complete the job
  • Changing property ownership
  • Simply refusing to do the work

Can an anticipatory breach be taken back?

Short-term arguments could have led one party to refuse to work with the other. However, there is nothing within business law that states that you can’t come to an agreement that would resolve the anticipatory breach. As long as both parties have not changed anything, the work could continue.

Although an anticipatory breach isn’t too serious in the beginning, there should still be an attorney present to ensure that all information is being recorded. In addition, they may be able to provide you with the best legal course if the situation becomes worse.