Anticipatory Repudiation of Contract Under the Uniform Commercial Code (UCC) and the Saudi Commercial Law

Abstract

The concept of anticipatory repudiation differs from traditional legal principles that do not place the breaching party in a position of default Since the time for performance of his obligation has not yet arrived. This concept grants the aggrieved party in binding contracts between the parties the right to suspend the performance of his obligations, terminate the contract, and claim damages before the agreed time for performance has elapsed, whenever it becomes clear that the breaching party will not perform his obligation at the agreed time. This is based on explicit or implicit statements by the breaching party indicating his inability or unwillingness to perform the specific obligation. This concept was adopted by the United States Uniform Commercial Code of 2002. It is worth noting that this matter is unfamiliar in Saudi commercial law, which is derived from Islamic jurisprudence.