ABA Family Legal Guide

Contracts and Consumer Law

When Things Go Wrong

Breach of Contract

What is a breach by repudiation?

Repudiation is a clear statement made by one party before performance is due that the party cannot or will not perform a material part of that party's contract obligations. Suppose that on the day before your friend was to pick up the Yugo that you promised to sell to her, you sent her a message that you decided to sell the car to someone else. That would be a repudiation. There can also be repudiation by act, such as actually selling your Yugo to another party.

It's not repudiation if one party will not perform because of an honest disagreement over the contract's terms.