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Repudiatory Breach of Contract

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The element prohibits anticipatory breach or repudiation of a contract. It is not necessary that repudiation should take place in so many words, but any conduct which implies or indicates with reasonable certainty that the performance under the contract which is contingent will not be rendered when such performance becomes due is sufficient to prove repudiation. For instance, the denial of the existence of the contract would amount to repudiation. Similarly, actions to dispute the terms of the contract or an attempt to cancel the contract without valid grounds are instances amounting to repudiation.

Thus breach of contract occurs when one of the parties to the contract fails to perform his part of the contract either fully or in part to the detriment of the other party who is innocent. Usually, the breach of a contract comes to light only at or after the time set for the performance of the contract elapsed. Repudiation, on the other hand, becomes known even before the time ser for performance. A repudiation is a form of breach of contract that becomes apparent by the behavior of any of the parties to the contract indicating his intention not to honor their obligations under the contract. It is possible that any party to a contract may behave this way with respect to all of his obligations under the contract like the total denial of the existence of the contract itself. Similar inference of repudiation can be drawn from the actions of the parties to try the contract without the necessary jurisdiction to withdraw from the contract or where the party serves notice on the other that he cannot or will not perform under the contract. Any of the parties to the contract may also repudiate only a part of some of his obligations under the contract. For instance, a party can be said to have partly repudiated the contract when the party tenders inadequate or defective performance as proper performance under the contract.