So, you made an agreement with your bestie to go to a ballgame this weekend and he or she backed out on the deal? Hey hey, Doris Day...don’t get your panties in a bunch. (If you SERIOUSLY don’t know who Doris Day is, you should bow in shame right now. Better yet, hop on one foot, rub your belly, and shout your apologies at the top of your lungs. We’ll be waiting with a YouTube crew to capture the moment.)
Now let’s get to the fun stuff. Anticipatory breach is a massive legal term for flaking. But not in terms of besties.
It means a party to a contract anticipates a breach, either because it has been made clear that the other party does not intend to comply with the contract, or it has been implied that actions or events will affect the contract. In this event, the party that will be harmed can begin the legal process to have the court determine what the rights of the parties are under the contract (lawsuit, baby, an action for declaratory judgement).
Related or Semi-related Video
Finance: What is a Comfort Letter?6 Views
Finance a la shmoop what is a comfort letter? S....See the smooth curves there is [An S letter appears]
that comforting okay okay comfort letter is a letter
this kind of letter written by an expert usually someone like an auditor or a tax [Expert appears with comfort letter]
attorney in one form or another who has done deep due diligence into a company
looked at myriad details and data and volume counts of plastic cubes in their
inventory and then they've looked at their distribution contracts
you know with truckers and retail stores and drone deliverers and then they've [Drone flying in the air]
looked at their bank accounts both the onshore ones and the offshore ones that
you know they don't really like to talk about and then about 87 ish other things
that all those people look at and then they write a letter like an actual
letter which is usually given to the Board of Directors or an acquirer or
the investigating party whoever that is and that letter states that what the
company says it has or does is in fact what it has or does which is a good [Man discussing comfort letters]
thing to know so this letter well it just gives comfort to everyone
the only challenge can be you know trying not to become too comfortable [Man working near a waterfall]
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