Wednesday, May 4, 2011

What is anticipatory repudiation of contract, contractual obligations ?

ANTICIPATORY REPUDIATION AS DEFENSE TO BREACH OF CONTRACT CLAIM

To prove a claim for breach of contract, a plaintiff must establish (1) the existence of a valid contract between plaintiff and defendant, (2) the plaintiff's performance or tender of performance, (3) the defendant's breach of the contract, and (4) the plaintiff's damage as a result of the breach. Hackberry Creek Country Club, Inc. v. Hackberry Creek Home Owners' Ass'n, 205 S.W.3d 46, 55 (Tex. App.-Dallas 2006, pet. denied).

A repudiation or anticipatory breach occurs when a party's conduct “shows a fixed intention to abandon, renounce, and refuse to perform the contract.” SAVA gumarska in kemijska industria d.d. v. Advanced Polymer Sci., Inc., 128 S.W.3d 304, 315 (Tex. App.-Dallas 2004, no pet.); Grp. Life & Health Ins. Co. v. Turner, 620 S.W.2d 670, 673 (Tex. Civ. App.-Dallas 1981, no writ). The repudiation must be absolute and unconditional. Bans Props., L.L.C. v. Hous. Auth. of City of Odessa, 327 S.W.3d 310, 315 (Tex. App.-Eastland 2010, no pet.); El Paso Prod. Co. v. Valence Operating Co., 112 S.W.3d 616, 621 (Tex. App.-Houston [1st Dist.] 2003, pet. denied).

SOURCE: Dallas Court of Appeals 05-09-01397-CV 4/22/11

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