A party's refusal to meet obligations under a contract is described by which term?

• A. Anticipatory breach
• B. Repudiation
• C. Tender
• D. Material breach of contract

Answer: (B)

Repudiation is when a party clearly refuses to perform their contractual obligations or otherwise makes completion of the contract impossible. This explicit refusal gives the other party the right to treat the contract as breached and to pursue remedies, such as terminating the agreement or seeking damages. Tender, by contrast, is simply an offer to perform and does not reflect a refusal. A material breach is a serious failure in performance that defeats the contract’s purpose, but it describes the effect of performance rather than the act of refusing to perform. Anticipatory breach refers to a party signaling in advance that they will not perform when due; while related, the situation described here centers on the actual act of refusal, which is repudiation.