Contracts

In Tennessee, 'anticipatory breach' occurs when:

AA party breaches the contract on the day of closing
BA party indicates in advance that they will not perform their contractual obligations✓ Correct
CA party requests an extension of the closing date
DA party submits a counteroffer

Explanation

Anticipatory breach (anticipatory repudiation) occurs when one party clearly communicates before performance is due that they will not fulfill their contractual obligations, allowing the other party to treat the contract as breached immediately.

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