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Managing an anticipatory breach

On Behalf of | Aug 16, 2023 | Business Litigation

Dealing with an anticipatory breach of contract can be a stressful experience for Ohio residents and entrepreneurs. An anticipatory breach occurs when one party communicates, either through words or actions, an intention to not fulfill their contractual obligations. While such a breach may seem like a roadblock, there are strategic steps to navigate this scenario in a way that minimizes potential losses.

Review the contract

The first step is to thoroughly review the contract terms. Ensure you clearly understand the obligations and deadlines stipulated for both parties. This will help you determine whether the other party’s actions indeed amount to an anticipatory breach.

Open communication

Reach out to the party in breach to clarify their intentions. Misunderstandings or unforeseen circumstances could potentially be behind their actions. Engage in an open and nonconfrontational conversation to gauge their commitment to fulfilling the contract.

Document everything

Maintain meticulous records of all communications and actions that concern the breach. This documentation will serve as crucial evidence should corporate litigation become necessary.


Even in the face of an anticipatory breach, it’s often in your best interest to minimize potential losses. Take steps to mitigate damages by seeking alternative solutions or substitute arrangements that could fulfill the contract’s purpose.

Rescission and damages

Depending on the situation, you may consider seeking rescission of the contract (cancellation) or pursuing damages for any losses resulting from the breach. Fully understanding the law can help you determine the most appropriate action to take.

Act promptly

Time is of the essence when dealing with an anticipatory breach. Delaying action could impact your ability to seek remedies, so it’s critical to address the situation promptly.

Negotiation and settlement

In some cases, negotiation might lead to a settlement that both parties find agreeable. Exploring this option can potentially save time and resources and preserve business relationships.

Remain flexible and know your rights

Ultimately, handling an anticipatory breach requires a mix of careful assessment, communication and a proactive approach to protect your interests. By remaining flexible in your ability to deal with the contract breach, you can effectively navigate any challenges and ensure your interests do not suffer as a result.