Which term refers to notifying, before performance is due, that you will not perform as agreed?

Which term refers to notifying, before performance is due, that you will not perform as agreed?

• A. Rescission
• B. Anticipatory Breach
• C. Primary Information
• D. Invitation to Treat

Answer: (B)

Notifying before performance is due that you will not perform as agreed is anticipatory breach. This happens when one party clearly indicates, through words or conduct, that they won’t or can’t fulfill their obligations before the performance date. The notice gives the other party a choice: treat the contract as breached now and sue for damages, or wait until the performance date to see if performance occurs. If the other party still fails to perform, a breach is established at the time performance was due.

This term fits best because it specifically describes pre-emptive repudiation of the contract, rather than ending the contract by mutual agreement (rescission) or being part of the formation stage (invitation to treat). Failure to perform on the due date is a breach, but the distinctive feature here is the early indication of non-performance.