In a situation of anticipatory breach, what can the non-breaching party do?

In a situation of anticipatory breach, the correct action for the non-breaching party is to seek damages even before the breach occurs. Anticipatory breach occurs when one party clearly indicates, either through actions or words, that they will not fulfill their contractual obligations. This allows the non-breaching party to take preemptive measures to mitigate their losses.

By seeking damages in anticipation of the breach, the non-breaching party can address potential losses that may arise from the inability to execute their side of the contract due to the other party's non-performance. This proactive approach is designed to protect the interests of the non-breaching party and allows them to initiate legal proceedings or negotiate compensation for expected losses before the actual breach takes place.

The option of waiting for the breach to occur limits the non-breaching party's ability to prepare for the consequences of the breach effectively. Terminating the contract without recourse may also limit their options for recovering damages. Renegotiating contract terms could be an option in some situations, but it does not directly address the need to seek damages for anticipated losses and may not be practical if one party has already indicated an unwillingness to perform.