California First-Year Law Students' Exam (Baby Bar) — MCContractsMedium
A small independent bookstore owner enters into a contract with a national book distributor to receive 500 copies of a highly anticipated new novel. The contract specifies a delivery date of October 1st. On September 15th, the distributor informs the bookstore owner that due to an unexpected surge in demand, they will only be able to deliver 250 copies by October 1st, and the remaining 250 copies will arrive on October 15th. The bookstore owner immediately cancels the order and sues for breach of contract. Which of the following best describes the distributor's communication?
- AA request for an accommodation.
- BA modification of the contract.
- CA partial breach of contract.
- DAn anticipatory repudiation.
Show answer & explanationAnswer & explanation
Correct answer: D. An anticipatory repudiation.
Anticipatory repudiation occurs when one party unequivocally indicates, before the performance is due, that they will not perform their contractual obligations. The distributor's statement that they will only deliver half the books on time, and the rest later, constitutes such an indication.
Why the other options are wrong
- A. While it might feel like a request, it's a definitive statement of non-performance, which has legal consequences.
- B. A modification requires mutual assent, which was not given here.
- C. A partial breach occurs when performance is due and incomplete, not before.
Anticipatory Repudiation
A clear and unequivocal indication by one party to a contract that they will not perform their contractual obligations when due.
- Occurs before performance is due.
- Gives the non-breaching party immediate options (sue, await performance, etc.).
- Can be retracted if the other party hasn't relied on it.
Memory trick: Anticipate the Repudiation Before the Due Date.