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How to deal with anticipatory repudiation

On Behalf of | Jul 16, 2021 | Business Law |

Sometimes, you will know that someone is going to break their contract well before they actually violate it. Normally, you would need to wait until they actually breach their contract to file a lawsuit in a Florida court. When there are clear signs of anticipatory repudiation, you may be able to not hold up your own end of the contract and file a lawsuit against the other party.

Anticipatory repudiation allows you to sue

Normally, you cannot file a lawsuit when you do not yet have a controversy. With anticipatory repudiation, you have very clear signs that you will have a controversy based on the actions and statements of the other party. Here, they are very clearly telling you that they will not honor their side of the contract, and they are usually taking an action in line with that. When that happens, your focus needs to be on protecting yourself.

You may be able to work out a solution

The question is what you should do when you have very clear indications that someone will not perform. Not every situation is the same. You need to protect your own legal rights and financial interests. You may want to give the other party an opportunity to retract their repudiation before you head down the legal route. Avoiding litigation may be the best outcome in your situation. You might have to renegotiate some terms. Whether you insist on strict compliance is up to you.

The first thing that you should do if it looks like the other party may repudiate the contract is call a business law attorney. The lawyer may tell you what you should do on your end to document the refusal to perform and protect your own interests. If nothing can be worked out, the attorney may file a lawsuit on your behalf.