What does the term "repudiation" refer to in terms of contract breaches?

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Repudiation in terms of contract breaches refers specifically to a situation where one party indicates a refusal to perform their contractual obligations. This can happen either through explicit statements or by actions that suggest they do not intend to abide by the contract terms. Such conduct enables the other party to treat the contract as breached and often leads to a right to seek remedies or damages resulting from the breach.

In this context, if one party clearly shows that they will not fulfill what they agreed to in the contract, it leaves the other party in a position where they can take legal action. For example, this may be seen in situations where a hotel fails to provide services agreed upon in a booking agreement, leading the other party to claim damages for the loss incurred.

Other options, such as expressing an intent to fulfill the contract, voluntarily completing obligations, or negotiating terms, do not represent repudiation. Instead, those actions indicate compliance or attempts to modify the agreement, which are contrary to the concept of repudiation.

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