When To Anticipate a Lawsuit

There is a basic principle in law that requires that something needs to have happened before you can start a lawsuit.

 

However, there is a circumstance where you can start a lawsuit before something concrete has happened.

 

First, you need a contract.

 

Then, you need anticipatory repudiation.

 

Anticipatory repudiation is when there has been an explicit statement that a party will breach the contract or a voluntary act that renders a party unable to perform under the contract.

 

Then, the other party may treat the entire contract as breached and commence a lawsuit without delay.

 

However, stating that you will have difficulty performing under the contract does not rise to the level of an anticipatory repudiation.

 

The doctrine of anticipatory repudiation does away with the need for the non-breaching party to postpone initiating a lawsuit until the time for the performance of the other party has expired.

 

I hope this explanation helps.

 

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