When anticipatory repudiation occurs, which option is available to the non-repudiating party?

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Anticipatory repudiation happens when one party clearly states they will not perform when performance is due. That gives the non-repudiating party immediate breach rights. The most straightforward remedy is to treat the repudiation as a total breach and sue right away for damages. By declaring the contract breached now, the non-repudiating party can seek compensation without waiting for the performance date.

You can also suspend your own performance and wait to sue, and you may terminate the contract and seek damages if the repudiation continues, but the foundational remedy is the right to sue for damages immediately. Treating the repudiation as an offer to rescind isn’t accurate because repudiation is not an offer to rescind, and ignoring it isn’t a remedy—one of the other options is to pursue damages or, if appropriate, suspend performance.