In case of anticipatory breach of contract, the seller repudiates the contract before the date of delivery and the buyer may treat the contract as subsisting and wait till the date of delivery and/or treat the contract as rescinded and sue for damages for the breach.
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True
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False
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Partly true
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Cannot say
A
Correct answer
Explanation
Anticipatory breach occurs when one party clearly indicates they will not perform when performance is due. The injured party has two options: (1) treat the contract as still valid and wait for performance date, or (2) treat the contract as rescinded immediately and sue for damages. This gives flexibility in responding to repudiation.