© 2012 GOULD’S, ALL RIGHTS RESERVED.61. CORRECT ANSWER: D.Anticipatory repudiation occurs where a party indicates thatthey are unable or unwilling to perform. When this occurs, theother party has a right to suspend their performance and sue forbreach of contract. Prospective inability to perform / voluntarydisablement, is a lesser form of anticipatory repudiation, wherea party indicates in some fashion that they would like toperform, but are having trouble actually performing. Betty hada noble reason for not fulfilling the requirements of her contractwith Marty.However, no matter how noble the reason, Betty,clearly expressed to Marty that she would not fulfill therequirements of her performance under the contract. Inasmuchas she still had performance due, she will be seen to haveanticipatorily repudiated the contract, giving Marty the right tocancel the contract and sue for breach of contract.