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Multiple Choice

Under common law anticipatory repudiation, when may the repudiating party retract the repudiation?

Under anticipatory repudiation, a party may retract the repudiation as long as the other party has not yet acted in reliance on it or indicated that it will treat the repudiation as final. This lets the repudiating party restore performance if the other party hasn’t locked into breach. Once the non-repudiating party has acted in reliance (for example, suspended performance, arranged to perform with others, or begun taking steps to treat the contract as breached) or has clearly stated it will treat the repudiation as final (such as suing or treating the contract as breached), the right to retract is lost. The retraction must be communicated to the other party.

Under anticipatory repudiation, a party may retract the repudiation as long as the other party has not yet acted in reliance on it or indicated that it will treat the repudiation as final. This lets the repudiating party restore performance if the other party hasn’t locked into breach. Once the non-repudiating party has acted in reliance (for example, suspended performance, arranged to perform with others, or begun taking steps to treat the contract as breached) or has clearly stated it will treat the repudiation as final (such as suing or treating the contract as breached), the right to retract is lost. The retraction must be communicated to the other party.