What is repudiation of a contract?

Repudiationoccurs whenone party refuses to fulfill their contractual obligations before performance is due.

Step-by-Step Explanation:

Definition of Repudiation:

Aclear refusalby one party to honor the contract terms.

Theother party may terminate the contract and sue for damages.

Example:

A contractoragrees to build a bridge but later refuses, sayingthey won’t continue.

Why Option D Is Correct:

Repudiationis an explicit refusal to performbefore the obligation is due.

Why Other Options Are Incorrect:

A (Doing business with a third party)– Thisdoes not necessarily repudiate the contract.

B (Declaring a contract illegal)– That would involvecontract voiding, not repudiation.

C (Suing for damages)– Abreach must occur firstbefore suing.