Contracts

Under Montana law, 'anticipatory repudiation' of a real estate contract occurs when:

AA party changes their mind after signing but before performance is due
BA party clearly communicates before the performance date that they will not perform their contractual obligations✓ Correct
CA party files bankruptcy during the transaction
DA party requests an extension of the closing date

Explanation

Anticipatory repudiation occurs when a party clearly indicates before the performance date that they will not perform. The non-breaching party may treat this as an immediate breach, sue for damages, or seek specific performance without waiting for the performance date.

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