What is an example of an anticipatory breach?

An anticipatory breach occurs when one party to a contract communicates, either verbally or in writing, their intention not to fulfill their contractual obligations before the performance is due. This is significant because it allows the non-breaching party to take appropriate steps in response, such as seeking alternative arrangements or preparing for a breach of contract.

In this context, communicating intent not to perform effectively informs the other party that the obligations under the contract will not be met, even before the actual delivery date. This preemptive notice provides the non-breaching party with the opportunity to act quickly and potentially mitigate losses.

While other options may involve issues related to performance, they do not meet the criteria for anticipatory breach. For example, delivering goods earlier than required is still a performance of contract obligations, albeit ahead of schedule. Failure to provide receipts or delayed payment may indicate issues in the performance of the contract but do not necessarily convey an outright refusal to perform the contract completely.