Minnesota has various laws regarding contracts. Since contracts are used on a daily basis to conduct business and protect financial assets, it’s no surprise that sometimes legal disputes happen. One of the most common is an anticipatory breach of contract.
What is an anticipatory breach?
An anticipatory breach is one of many different types of contract disputes that businesses face. This particular breach is defined by a promisor explicitly stating that a party will not deliver or honor its contractual obligations. This refusal must happen before the predetermined end of the contract.
What are your options?
As a promisee, you have three main options to deal with the anticipatory breach. You can opt to cancel the contract and ask the promiser to have your consideration refunded. You can opt to take legal action against the promiser. Or, you can opt to have no reaction to the breach. This last option often arises in cases where there is a long-standing relationship between the promiser and the promisee.
In the event that one decides to take a legal suit against the promiser, there are specific things they must do. First, they must file suit before the contractual end date. Second, they must do everything in their power to minimize their losses from the anticipatory breach of contract.
Claiming an anticipatory breach of contract is something that every business may need to do at some point. Understanding just what this violation is and what your options are in response to it can help to ensure that your business is prepared to handle it.