Rick agreed to buy twenty acres of land from Tina. Three weeks before the deal is to close, Rick calls Tina and says, "The deal is off!" In this situation, Rick's actions constitute:

a. a reformation of the contract.
b. substantial performance of the contract.
c. a discharge of the contract by novation.
d. anticipatory repudiation of the contract.

The answer is option (D) anticipatory repudiation of the contract.

Explanation:

Anticipatory repudiation is a law term that describes when one party in a contract agreement fails to meets the demands of its contractual agreement to another party.

In other words, the term which is also known as an anticipatory repudiation is said to have occurred when one party in a contract clearly indicates that it has no intention to fulfill its contractual obligations to the other party.

A good example is Rick who had earlier entered a land-buying agreement with Tina. However, three weeks before the expiration of the contract, Rick called to note that he has no intention to buy the land again.

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