Rick agreed to buy two campers from McMahon and made a deposit of $1,000 as partial payment. Rick then wired McMahon not to ship the campers and explained his reasons for delaying shipment. Later, Rick decided not to buy the campers and demanded a return of his $1,000. Was Rick's instruction not to ship an anticipatory repudiation that will justify McMahon's retention of the $1,000? Explain.

Question

Padilla

Business

28 July, 10:29

Rick agreed to buy two campers from McMahon and made a deposit of $1,000 as partial payment. Rick then wired McMahon not to ship the campers and explained his reasons for delaying shipment. Later, Rick decided not to buy the campers and demanded a return of his $1,000. Was Rick's instruction not to ship an anticipatory repudiation that will justify McMahon's retention of the $1,000? Explain.

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Answers (1)

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Devan Hopkins · Answer 1

Rick instruction not to ship is an anticipatory repudiation and it justifies McMahon's retention of the $1000

Explanation:

Rick instruction not to ship is an anticipatory repudiation and it justifies McMahon's retention of the $1000

when a contract is entered by two parties and one party provides a clear inability/unwillingness to keep to the original terms of the contract the party is said to have committed an anticipatory repudiation and the decision to accept or reject such inability lies with the second party because the second party may have to lose something due to the inability of the first party keeping to the contract hence McMahon's retention of the initial deposit of $1000 is within his rights