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What Is an Anticipatory Breach of Contract?

An Anticipatory breach of contract occurs when one party indicates, through behavior, actions, or words, his or her intention to fail to meet his or her contractual duties to the other party. By proving the intent to breach the contract, the other party may have grounds for filing a lawsuit.

Types of Anticipated Breach of Contract

A Party to the Contract Makes a Positive and Absolute Refusal to the Other Party

In this case, a party must precisely tell the other party that he or she won’t go through with the deal. A vague refusal isn’t enough. Instead, the refusal must be clear, direct, and intended for the other party.

An Action that Keeps the Other Party from Performing  

An action or actions of a party to the contract can also lead to an anticipatory breach. For instance, assuming a person committed to pay back a loan from proceeds of his or her business. Instead, that person mismanaged the business and incurred many other debts in the process, making it difficult for him or her to repay the original loan. That person’s negligent, voluntary actions may be considered as an anticipatory breach of the original loan agreements.

Transfer of Property Tied to the Deal to a Third Party

If the contract involves property sale, an anticipatory breach happens when one party hands over the property to someone else. For instance, if a person has entered a contract to purchase a house and he or she discovers that the other party has transferred it to a family member, then an anticipatory breach of the sales contract will be considered to have happened. In such a case, a breach of contract attorney will help the plaintiff determine the legal remedies available to him or her.

Dealing with an Anticipatory Breach

If one party commits an anticipatory breach, the other party may cancel the contract prior to the arrival of the time of performance. Alternatively, the other party may opt to wait for the arrival of the time of performance, hoping that the breaching party will meet his or her duties as originally agreed.

Working with a breach of contract attorney is another great way to resolve the matter. The attorney will examine the contract and identify elements to prove a breach of contract case. The attorney will then develop a strong argument that fits the situation and present the case to the court. 

What Our Clients Say

My family and I are thankful to Maddox, Segerblom and Canepa for their assistance during a three year case regarding construction defects to our home. We are truly appreciative of their knowledge, determination and assistance during this process. They were always courteous, and available to answer any and all of our concerns and questions. Thank you for the wonderful resolution. Many thanks to you and your staff.

Frances Castelli

We used Maddox, Segerblom & Canepa to represent us in a legal suit re problems in construction on new properties that we purchased from a developer.

We were very pleased with the representation provided by this law firm. They were fully communicative, responsive to our questions and were very knowledgeable about the issues that required resolution. Even after we reached a resolution, they have been responsive in making sure to point us in the right direction for help with repairs that are required.

We would recommend them to others with similar issues that require legal help.

Atam & Margo Lalchandani

Maddox, Segerblom & Canepa did a FANTASTIC job in our construction defects case. I interacted with several people from their office throughout our 2 year litigation. Their staff is friendly, knowledgeable and always prompt about getting back to you when you have questions/comments/concerns. I especially enjoyed working with Darcy, Ardea, Eva, and Sandra. Being part of a lawsuit is no fun for anyone, but if you have to be a part of one, I can’t say enough positive things about this firm!

Victoria Fox

The law firm of Maddox, Segerblom, and Canepa were amazing to work with. They were thorough and always available for any questions we had. We worked a lot with Sandy who was always professional, friendly, always on time for appointments and just a great person to represent this firm. We have never been involved in a law suit before and they made it comfortable for us. We appreciate the hard work the lawyers and people who work for the firm did and would recommend them.

Becky Loudenburg
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