Which statement accurately describes anticipatory repudiation and its remedy?

• A. Anticipatory repudiation has no effect until the performance date.
• B. When there is anticipatory repudiation, the other party may suspend performance and sue for breach or treat the contract as terminated.
• C. Anticipatory repudiation is not recognized in contracts for sale of goods.
• D. Anticipatory repudiation cannot be asserted unless the repudiating party has communicated in writing.

Answer: (B)

Anticipatory repudiation happens when one party clearly indicates before performance is due that it will not perform. In that situation, the non‑repudiating party may suspend performance, sue for breach, or treat the contract as terminated. This captures the remedies available: you don’t have to wait until the performance date to seek relief—you can act immediately by treating it as breached or by terminating the contract and seeking damages, or you can suspend your own performance while awaiting a cure or assurance. The other statements misstate the concept: repudiation takes effect before the performance date; it applies in contracts for the sale of goods under the UCC; and it can be communicated orally or by conduct, not necessarily in writing.