Anticipatory Breach and Installment Contracts

• Author: Jack Michael Graves
• Pages: 127-136

Anticipatory Breach

Chapters 7 and 10 addressed “present” or actual existing breaches by seller

and buyer, respectively. However, in some instances, the likelihood of a

future breach will manifest itself before performance comes due—i.e., before

a “present” breach occurs. This circumstance is broadly characterized as

“anticipatory breach” under the CISG. Such an anticipatory breach may

take one of three basic forms. Two of these forms may arise from factual

circumstances internal or external to the contract at issue—the differences

between the two involving the degree of likelihood and effect of the antici‑

pated breach. The third involves installment contracts—specically the

effect of a present breach of one installment as predictive of potential future

breaches of other installments.

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ANTICIPATORY

BREACH AND

INSTALLMENT

CONTRACTS

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INTRNTL Graves CISG Final Press Pass.indd 1275/6/13 9:36 AM