Also known as:repudiate · repudiates · repudiated · repudiating · repudiations · repudiatee · repudiator · repudium · anticipatory repudiation
Written by attorneys · grounded in primary & secondary sources — see below
A contracting party's words or actions that indicate an intention not to perform the contract in the future.
Sources & Authorities
How it applies
Common Examples
6
Pre-Performance Statement Triggers Damages
Riverfront Developments agreed to build a warehouse for Rocky Mountain Mining by a set date. Before any work began or payment was due, Riverfront Developments told Rocky Mountain Mining it would not construct the warehouse. Rocky Mountain Mining sued immediately for total breach and recovered damages measured by the cost of substitute performance.
Buyer Awaits Seller Performance
Rising Sun Electronics contracted to sell circuit boards to Rina Rahman for delivery in sixty days. Rising Sun Electronics notified Rina Rahman it would not deliver. Rina Rahman waited a commercially reasonable period before covering elsewhere and then recovered the difference between the contract price and the higher cover price.
Select any source to read its text and confirm it supports the definition.
Cases
Uniform Acts
Restatements
Casebooks
Study Supplements
Dictionaries
Post-Repudiation Memorandum Satisfies Statute
Ravi Reddy orally agreed to sell land to Renee Rogers. After Renee Rogers repudiated, Ravi Reddy prepared and signed a detailed memorandum describing the deal. The memorandum, executed after the repudiation, satisfied the statute of frauds and allowed Ravi Reddy to enforce the contract.
Aggrieved Party Pursues Immediate Remedies
Rhapsody Entertainment agreed to supply sound equipment to Rowan Russell for an upcoming concert. Rhapsody Entertainment repudiated weeks before the event. Rowan Russell immediately purchased substitute equipment at a higher price and recovered the difference plus incidental costs even though he had earlier urged retraction.
Impracticability Discharges Repudiation Damages
Raymond Ramos contracted to deliver rare vintage cars to Rosalind Reed. Raymond Ramos repudiated before the delivery date. A subsequent government embargo made performance impossible. Raymond Ramos owed no damages for the repudiation because the duty would have been discharged by impracticability.
Seller Awarded Non-Acceptance Damages
Rocky Mountain Mining sold mining equipment to Riverfront Developments. Riverfront Developments repudiated before taking delivery. Rocky Mountain Mining could not recover the price because the goods were resalable, but it still recovered damages for non-acceptance under the contract-market differential.
Common questions
Frequently Asked
5
When does a party's statement qualify as repudiation under the Restatement?+
A statement qualifies when it indicates the obligor will commit a breach that would give rise to a claim for total breach. The statement must be sufficiently positive to be reasonably interpreted as a refusal or inability to perform.
Supporting sources
What remedies are available after a repudiation under the UCC?+
The aggrieved party may await performance for a commercially reasonable time, resort to any remedy for breach, or suspend its own performance. These options remain available even after urging retraction.
Supporting sources
Does a repudiation excuse a condition in the contract?+
Yes. A party's repudiation excuses the non-occurrence of a condition when the repudiation contributes materially to that non-occurrence.
Supporting sources
Can a party retract a repudiation?+
A repudiation may be retracted before the aggrieved party materially changes position in reliance or indicates the repudiation is final. Once retracted, the contract continues in force.
Supporting sources
How does failure to provide adequate assurance relate to repudiation?+
After a justified demand for assurance, failure to provide adequate assurance within a reasonable time not exceeding thirty days constitutes a repudiation.
Supporting sources
66 Mich. 568, 33 N.W. 919 (1887)Contracts
…of particular articles of property, a mistake or misapprehension as to the quality of the articles will not enable the vendor to repudiate the sale. The foregoing are all the authorities relied on as supporting the positions taken by my brethren in this case. I fail to discover any similarity between them and the present…