anticipatory breach

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Anticipatory Breach

In contracts, a declaration in which one party stops performing his/her obligations. The Uniform Commercial Code specifies how one may calculate damages in a lawsuit resulting from an anticipatory breach.
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anticipatory breach

An affirmative statement or action indicating that a party has no intention of honoring his or her contractual commitments.This is important because one cannot ordinarily bring a lawsuit until there has been an actual breach of a contract.For tactical or other reasons, it may be important to avoid delays.If there has been an anticipatory breach, the aggrieved party may bring suit immediately.

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References in periodicals archive ?
Furthermore, after applicant provided a copy of the Chester decision in its supplemental memorandum on March 30th, 2010, respondent did not submit any distinguishing legal authority undercutting the holding of that decision that the accrual date of the claim for statute of limitations purposes either when the claim is denied by respondent in the nature of an anticipatory breach of contract, or the end of the 30-day period calculated after a health care provider submits proof of claim, whichever is later."
And, further, Weight Watchers served CoolBrands with a complaint alleging an "anticipatory breach" of their licensing agreement, claiming CoolBrands had only a limited right to use the Weight Watchers brand in order to sell off remaining inventory for that one year period.
Canadian frozen desserts company CoolBrands International has said that it has been served with a complaint by Weight Watchers International alleging an "anticipatory breach" of a license agreement between the two companies.
AHI responded advising that since the agreement was not terminated in the manner provided for in the contract, the letter constituted an "anticipatory breach" of the contract.
According to Herdrich's theory of the case, the HMO committed fiduciary breach and constructive fraud by having an arrangement that "rewarded its physician owners for limiting medical care" and that this "entailed an inherent or anticipatory breach of an ERISA fiduciary duty, since these terms created an incentive to make decisions in the physicians' self-interest, rather than the exclusive interests of plan participants." 2000 U.S.