when a party expressly declares that performance will not be made when required, this declaration is called anticipatory repudiation.
there must be a clear, absolute, unequivocal refusal to perform
may be expressed by conduct that makes it impossible for the repudiating party to subsequently perform.
ex: farmer makes contract to sell almost entire crop of potatoes and then sells and delivers them to another buyer before the delivery date to the first buyer.
1. do nothing beyond stating that performance at the proper time will be required
2. regard the contract as having been definately broken and bring a lawsuit without waiting to see if it will be done properly
3. regard the repudiation as an offer to cancel the contract
compensate the injured party for damages incurred as a result of breach of contract.
direct damages and consequential (or special) damages
stipulated in contract that if breach is made, a fixed sum may be paid, such as $1,000 a day for delay
1. the situation must be one in which it is difficult or impossible to determine acutal damages
2. the amount must not be excessive
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