Contracts

What is 'anticipatory breach' in an Oregon real estate contract?

AA breach that happens at the time of closing
BWhen one party clearly communicates before the performance date that they will not perform their contractual obligations✓ Correct
CA breach caused by adverse weather conditions
DWhen both parties mutually decide not to perform

Explanation

Anticipatory breach (or anticipatory repudiation) occurs when a party clearly communicates or demonstrates before the performance date that they will not fulfill their contractual obligations. In Oregon real estate, if a seller notifies the buyer before closing that they are keeping the property, the buyer can treat this as a breach and immediately pursue remedies (specific performance or damages) without waiting for closing day.

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