Options for dealing with an anticipatory repudiation in contracts

Options for dealing with an anticipatory repudiation in contracts

On Behalf of | Jul 27, 2021 | Contracts |

Do you enter into contracts as a regular part of doing business in Hawaii? If so, you may want to take a closer look at anticipatory repudiation rules, which protect you when someone else refuses to make good on their contractual obligations.

When the other party changes their mind

Good examples of the practice are commercial real estate contracts. The seller refuses to close and will not sign any paperwork. Typically, this means that you no longer have to hold up your end of the bargain.

Understanding anticipatory repudiation

This term refers to the performance of future obligations under a contract. In his scenario, you have rights.

For example, the party backing out of the contract may have to pay compensatory damages. In some cases, the law might force the party to follow through on the terms of the agreement. You will no longer have to do what you agreed to in the contracts.

Securing your position in the agreement

In some cases, there is a lot riding on making the agreement happen. In this situation, you might consider renegotiating the terms of the contract to give the other party a chance to perform the action they said they would do. This solution works well when the reason for the non-performance is one of inability to follow through.

While you could ask for a written assurance, remember that the party already indicated their willingness to walk away from the initial agreement. When you cannot arrive at a resolution that is satisfactory for you, filing a lawsuit and demanding financial compensation is most likely the only other choice. If you are currently in this position, talking to an attorney could help you choose the best course of action.