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Anticipatory repudiation: is the force with you?(credit )(Column)

Business Credit

| May 01, 2008 | Thorne, Deborah; Hamstra, James | COPYRIGHT 2008 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Did you ever play the game "Chicken" as a kid (or watch some classmates with more bravado do so)? You know, the game where two people run directly at each other hoping the other will flinch at the last minute and avoid the inevitable and painful collision?

A Long Time Ago in a Galaxy Far, Far Away

Well, the concept of anticipatory repudiation is not quite as dramatic or messy, but some analogies can be drawn. In essence, anticipatory repudiation gives contracting parties a way out of a doomed contract. For the sake of illustration, let's pretend we have two individuals named L. Skywalker and D. Vader who have entered into a bilateral contract where both ...

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