What characterizes an anticipatory breach?

An anticipatory breach is characterized by one party indicating, before the performance is due, that they will not fulfill their contractual obligations. This preemptive declaration allows the non-breaching party to understand that the contract will not be honored and gives them the opportunity to seek remedies or prepare for the breach.

In the context of contract law, this concept enables the aggrieved party to act without waiting for the time of performance to pass. By signaling their intent not to perform, the breaching party creates a situation where the other party can mitigate damages or pursue alternative remedies. This element is fundamental as it emphasizes the importance of communication and the clear intent behind contract obligations before they come due, distinguishing it from other forms of breach that occur at the time of performance or later.

The other choices touch on different aspects of contract performance and breach, such as timely performance, refusal to accept, or failure to perform at the due date, but they do not capture the essence of anticipatory breach, which hinges specifically on the advance indication of non-performance.