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Reacting to an anticipatory breach

On Behalf of | May 14, 2023 | Business Litigation |

In the realm of contract law, an anticipatory breach occurs when one party to a contract informs the other party that they will not be able to fulfill their obligations before the performance is due. In other words, an anticipatory breach is a situation where one party to a contract makes it clear that they will not keep their end of the bargain. This can be a challenging situation for Minnesota businesses to deal with, but there are steps you can take to manage an anticipatory breach and protect your interests.

Review the contract terms

Carefully reviewing the terms of the contract will help you determine whether the other party is truly in breach of the contract or if they are simply experiencing a temporary obstacle that can be resolved. If you determine that a contract dispute is expected to arise, you should take immediate action to protect your interests.

Send a letter to the other party

A letter can inform the other party that you consider the contract to be breached. The letter should outline the steps you plan to take to enforce your rights. This letter should be sent as soon as possible after becoming aware of the anticipatory breach, as delays could harm your chances of success.

Negotiate a resolution

Negotiating a resolution with the other party may involve renegotiating the contract terms or agreeing to an extension of time for performance. This approach can be beneficial if the other party is willing to work with you and there is a possibility of salvaging the relationship.


If negotiation is not possible, unfortunately for the relationship, you may need to consider taking legal action to enforce your rights. This could involve filing a lawsuit for breach of contract or seeking an injunction to prevent the other party from taking actions that would harm your interests.