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Anticipatory Repudiation and Adequate Assurance

·

By

ACL


The short answer

Anticipatory repudiation is a clear, unequivocal statement or act showing a party will not perform before performance is due. The other side can treat it as a breach immediately. When there is only reasonable doubt, a demand for adequate assurance may be the safer step.

Where it fits in your case

When a supplier stops responding, a customer misses payments, or a partner says it cannot go forward.

What to expect

  • Clear repudiation lets you sue now or wait, and you may suspend your own performance.

  • Adequate assurance. For goods, a written demand can require assurance within a reasonable time, up to 30 days (UCC 2-609).

  • Retraction. A repudiating party can often take it back before the other side relies on it.

  • Suspension risk. Stopping performance without a clear right can make you the breaching party.

What we need from you

All communications showing the other side’s position, and your own performance records.

Common misconceptions

  • “They’re late, so they’ve repudiated.” Delay alone is usually not repudiation.

  • “We can stop delivering until they pay.” Only if the contract or law supports it.

This resource provides general information about Illinois and federal law, not legal advice about your situation. Reading it does not create an attorney-client relationship. The right answer often depends on the specific facts, contract language, policy wording, and deadlines involved.

ALLISONCHOLAW / BUSINESS LITIGATION & COUNSEL

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