If one party anticipatorily repudiates, what remedies may the non-breaching party pursue?

• A. The non-breaching party may sue for damages and terminate the contract
• B. The non-breaching party may wait for performance only if the other party has repudiated
• C. The non-breaching party may sue for damages, suspend performance, or wait for performance
• D. The non-breaching party loses any right to remedies

Answer: (C)

Anticipatory repudiation opens up several practical paths for the non‑breaching party. If one party clearly signals it will not perform, the other party may treat that as a breach and take action to protect its interests. The recognized options include suing for damages, suspending their own performance, or waiting for the repudiating party to perform. This flexibility prevents the innocent party from being forced to perform when the other side has indicated it won’t, while still preserving the opportunity to recover losses or see if performance occurs. The other choices are too narrow or incorrect: waiting only on repudiation is overly restrictive, losing rights to remedies is false, and limiting remedies to damages plus termination misses the other available responses such as suspending performance or waiting for performance.