Also known as: reneges · reneged · reneging · back out · default on
Written by attorneys · grounded in primary & secondary sources — see below
To fail to keep a promise or commitment made in a transaction or agreement. The breach may trigger remedies such as specific performance, damages, or foreclosure depending on the surrounding legal framework.
Ryan Roberts borrowed funds from a bank secured by a mortgage on his commercial building. After the loan closed, Roberts stopped all repairs and allowed the roof to collapse, reducing the property value below the loan balance. The bank treated the neglect as waste and initiated foreclosure to recover its security.
Ricardo Rojas received a foreclosure notice after missing several mortgage payments. Two days before the scheduled sale he attempted to tender payment by personal check rather than the required cashier's check or electronic transfer. The lender rejected the tender and proceeded with the sale.
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Raymond Ramos pleaded guilty after the prosecutor promised to recommend a one-year sentence. At the hearing the prosecutor instead urged a five-year term. The court vacated the plea because the government had failed to honor its commitment.
Roberto Reyes purchased state bonds issued to finance public works. After a change in administration the state legislature refused to appropriate funds for repayment. Reyes sued in federal court claiming the refusal impaired the obligation of contract.
Rebecca Ross owned shares in a steel company whose facilities the President ordered seized to avert a strike. The company had previously committed to continue operations under existing labor contracts. The seizure prevented performance of those commitments and led to litigation over executive authority.
Regina Robinson gave a reporter documents exposing city corruption on the condition that her identity remain secret. The newspaper later published her name. Robinson sued for breach of the promise that induced her disclosure.
A defendant may obtain vacation of the plea or specific enforcement of the promise. Courts have uniformly granted some form of relief when the prosecutor reneges on a sentencing agreement made in connection with a plea bargain.
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Yes. Refusal to pay state bonds after issuance constitutes an attempt to renege on contractual obligations and may raise Contract Clause issues even if sovereign immunity bars the suit.
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Damages are available to the extent the waste impairs the mortgagee's security. The mortgagee may also foreclose or seek an injunction when the waste threatens the security interest.
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The borrower must tender payment in cash, cashier's check, certified check, teller's check, electronic funds transfer, or money order in the required amount no later than two days before the scheduled sale.
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…to reject this theory. Here, First American Bankshares, Inc. (FABI), and Virginia Bankshares, Inc. (VBI), retained the option to back out of the transaction if dissatisfied with the reaction of the minority shareholders, or if concerned that the merger would result in liability for violation of duties to the minority…