Okla. Stat. tit. 12A § 2-610

Current through Laws 2024, c. 363.

Section 2-610 - Anticipatory Repudiation

When either party repudiates the contract with respect to a performance not yet due the loss of which will substantially impair the value of the contract to the other, the aggrieved party may

(a) for a commercially reasonable time await performance by the repudiating party; or

(b) resort to any remedy for breach (Section 2-703 or Section 2-711), even though he has notified the repudiating party that he would await the latter's performance and has urged retraction; and

(c) in either case suspend his own performance or proceed in accordance with the provisions of this article on the seller's right to identify goods to the contract notwithstanding breach or to salvage unfinished goods (Section 2-704).

Okla. Stat. tit. 12A, § 2-610

Laws 1961, p. 94, § 2-610.

Oklahoma Code Comment

This section is substantially the same as the previous law applicable in most state jurisdictions. Oklahoma has very little previous authority. The performing party's right to treat an anticipatory repudiation as a breach has been previously recognized in Oklahoma, and he may at once bring an action for damages. Bankers Mortgage Co. v. Schwab, 138 Okl. 234, 280 P. 819 (1929).

Under this section the performing party has three remedies: (a) he may await performance for a commercially reasonable time. What is reasonable, of course, depends upon the circumstances. If the market value of the goods is fluctuating rapidly, a reasonable time may be quite short. (b) he may immediately resort to any remedies that either the buyer or seller has upon breach by the other, and (c) in any event, the repudiation excuses his own performances, and permits him to suspend performance. Previous Oklahoma law is in accord with (c), Waggoner Refining Co. v. Bell Oil & Gas Co., 117 Okl. 55, 244 P. 756 (1926).