Question

a(n) _______ of contract often arises when market conditions change and one party realizes that it will not be profitable to carry out the terms of the contract.
multiple choice
○ preemptive repudiation
○ conditional remediation
○ conditional breach
○ anticipatory repudiation
○ remedial repudiation

Explanation:

To solve this, we analyze each option:

• "Preemptive repudiation" is not a standard contract term.
• "Conditional remediation" refers to fixing issues under conditions, not contract repudiation.
• "Conditional breach" implies breach under conditions, not advance repudiation.
• "Anticipatory repudiation" occurs when a party indicates (before performance is due) they will not fulfill the contract, often due to unprofitable conditions (like market changes).
• "Remedial repudiation" is not a recognized contract concept.

The scenario describes a party realizing in advance (before performance) that fulfilling the contract is unprofitable, matching "anticipatory repudiation."

Answer:

D. anticipatory repudiation