High Caliber Legal Service

What is anticipatory breach of contract?

On Behalf of | Mar 25, 2022 | Business Law |

What happens when expectancy turns into impatience in the business world? An anticipatory breach of contract may be filed. Anticipation, and the lack of delivery on it as expected is both interesting and relevant part of business contract law. Here are some important points about anticipatory breach and examples of how it is used in the business world.

Supply and demand

A classic instance of promised supply and unfulfilled demand in the business arena outlines the basic concepts involved in an anticipatory breach. Let’s say that a floral delivery company is getting ready for next year’s Mothers’ Day promotion and has ordered custom-designed flower arrangement containers aligning with the theme of the advertising promotion.

Their contract states that the containers will be delivered to all participating florists on February 15th, just after the Valentine’s holiday but in enough time for the Mothers’ Day rush. Unfortunately, the container supplier notifies the floral company on January 2nd that shipments will not arrive on the agreed upon date due to production delays.

Even though the contract has not been broken officially, the breach is anticipated because of the supplier’s notification. The floral company’s promotion will not be possible without the branded containers, and they are justified in pursuing an anticipatory breach of contract case.

For property or provenance

This type of litigation gets used in various areas of the business world. A recent anticipatory breach case in Nashville was initiated due to a commercial property acquisition dispute. In New York City, the poor performance of a Meatpacking District eatery was accused of anticipatory breach of contract by celebrity chef Cat Cora. At issue were missed payments for her branding services and the tarnishing of Cora’s likeness used to build the restaurant’s identity.

Advantages of action

Even though the container company may be able to pull out all the stops and deliver the containers by Mother’s Day, there are advantages for the floral delivery company to take action immediately. By initiating a case, the floral company can terminate the contract and pursue other sources for their container needs. A business litigation attorney can be extremely useful in this pursuit. They help business owners fight for their best interests when they encounter unforeseen obstacles.

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