Which statement best illustrates anticipatory repudiation?

• A. A party expresses doubt about performance but intends to perform.
• B. A party unequivocally states they will not perform.
• C. A party delays performance due to supply issues.
• D. A party requests a modification while intending to perform.

Answer: (B)

Anticipatory repudiation happens when, before performance is due, a party clearly and unequivocally communicates an unwillingness or inability to perform. Saying that they will not perform fits this exactly, signaling that the contract’s future performance is at risk and allowing the other party to react immediately—either treat the contract as breached and sue for damages, or suspend their own performance and wait for the other side to perform.

The other options don’t show a definite refusal to perform: expressing doubt about performance but still intending to perform is not a repudiation; delaying performance due to supply issues isn’t a clear refusal; requesting a modification while still intending to perform indicates willingness to continue under new terms, not a refusal.