Answer :
The correct answer to the student's question is anticipatory repudiation, where one party informs the other before the performance is due that they will not fulfill their contractual obligations.
The situation described in the student's question refers to anticipatory repudiation, which is a term in contract law. Anticipatory repudiation occurs when one party to a contract declares to the other party that they do not intend to fulfill their obligations under the contract before the performance is due. It essentially gives the non-breaching party the right to seek remedies for breach of contract before the actual time of performance arrives.
In the scenario presented, Athletic Goods, Inc. (AGI) clearly and firmly tells Bob's Sports Store that it will not deliver the sports equipment as agreed. This statement by AGI constitutes anticipatory repudiation because AGI has indicated ahead of time that it will not perform its contractual obligations. Bob's Sports Store is the non-breaching party here and can decide how to address this breach, such as seeking damages or finding another supplier.Therefore is the correct answer is option A.
