Question

Assume that Jack and Hal and Sophia enter into a valid contract for the sale of the restaurant and for the covenant not to compete, and the deal would close in one year. Six months prior to the closing, Jack notifies Hal and Sophia that he changed his mind and that he would not through with the sale. Which of the following is true?
1. Jack has Jack has anticipatorily repudiated the contract the and therefore the courts treat the contract as a mutual rescission.
2. Jack has anticipatorily repudiated the contract, but Hal and Sophia must wait until the date of the closing to consider the contract to be breached.
3. Jack has anticipatorily repudiated the contract and Hal and can immediately consider the contract to be breached. 4. Jack has the right to do so, since the sale has not yet.

Answer 1

Answer:

3) Jack has anticipatorily repudiated the contract and Hal and Sophia can immediately consider the contract to be breached.

Explanation:

Anticipatory repudiation of a contract refers to one party breaching the contract by declaring that they do not intend to perform consideration. Anticipatory repudiation is a type of contract breach, and as soon as the other party is notified about it, it can decide to claim any type of compensatory damages that may result from the breaching.