ContractsIntermediateDelaware Exam

What is 'anticipatory breach' in a Delaware real estate contract?

AA breach that is anticipated by the non-breaching party before it occurs
BOne party clearly communicating before the performance date that they will not perform their contractual obligationsCorrect
CA breach that is anticipated in the contract's contingency clauses
DA breach that occurs at the beginning of the contract period

Why One party clearly communicating before the performance date that they will not perform their contractual obligations Is Correct

Answer B: One party clearly communicating before the performance date that they will not perform their contractual obligations

Anticipatory breach occurs when one party, before the performance date arrives, clearly communicates that they will not perform. The non-breaching party may then immediately treat the contract as breached without waiting for the performance date.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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