Understanding your options to remedy anticipatory breaches

On Behalf of | Aug 8, 2023 | Civil Litigation

Contracts are unavoidable parts of life for many Pennsylvania adults. A contract can help someone begin a business partnership, lease a vehicle or buy a new home. However, while legally binding, contracts don’t always guarantee that everyone fulfills their contractual obligations. If another party commits an anticipatory breach of contract, you have a few options.

Don’t react

Depending on the nature of your personal or professional partnership, you don’t have to do anything after getting word of an anticipatory breach. If your business and a supplier spent the past 20 years as close partners, one late order probably isn’t worth damaging the partnership through a lawsuit. However, it’s not unheard of for considerable damages to end long-standing partnerships.

Cancel the agreement

Whether involving business or civil litigation, contracts can involve consideration. When it involves contracts, consideration describes anything of value promised in a contract. Canceling a created contract gives you the right to have any consideration refunded. If you paid a company $10,000 in a breached contract, your business has the right to receive a refund of $10,000.

Take the other party to court

Sometimes, contract breaches cost companies lots of time and money. After receiving an anticipatory breach, you can take the other party to court before this contract’s delivery date arrives. This option can incur court-related costs. However, it may be the best way to go if you want to seek compensatory damages.

Contract breaches are sometimes impossible to avoid. When an anticipatory breach happens, proving who’s wrong under a unilateral contract is often simple. Proving breaches in bilateral contracts where both parties make agreements can be more complicated.