What is anticipatory repudiation in contract law?

Anticipatory repudiation in contract law occurs when one party to a contract indicates that they will not fulfill their obligations before the performance is due. This can be communicated through a clear statement or actions that demonstrate an unwillingness or inability to perform as promised. By signaling this intent before the due date, the non-repudiating party gains the opportunity to take appropriate measures, such as seeking alternative arrangements or preparing for potential legal remedies.

This concept is important because it protects the interests of the promisee by allowing them to take proactive steps rather than waiting until the performance date has passed, at which point they may suffer further loss due to reliance on the repudiating party's promise. The focus is on the intention to not perform rather than the actual non-performance itself.

The other options do not accurately represent anticipatory repudiation. Fulfilling obligations early does not imply a refusal to perform, performing partially does not equate to a clear indication of non-performance, and modifying the contract for convenience does not signal intent to abandon obligations. Each of these scenarios pertains to different aspects of contractual performance or modification, rather than the specific legal concept of anticipatory repudiation.