Anticipatory Breach Definition

An anticipatory breach of contract is defined as a material breach of contract that occurs when one party to the contract indicates, by words or conduct, that they do not intend to perform their obligations under the contract. This can be done explicitly, such as by sending a letter stating that you will not be performing your obligations, or implicitly, such as by stopping performance of your obligations without any explanation. An anticipatory breach of contract gives the other party the right to treat the contract as breached and sue for damages.