Contract Law——Anticipatory Repudiation and the Running of the Statute of Limitations——Franconia Associates v. United States, 536 U.S. 129 (2002)

The anticipatory repudiation of a contract occurs when a promisor withdraws from an obligation prior to the agreed upon performance time.  In the event of an anticipatory repudiation, the statutory period of limitations does not begin until the fixed day of contractual performance or upon the promisee’’s acknowledgment of the repudiation date as the time of the contract breach.  In Franconia Associates v. United States, the United States Supreme Court considered whether the United States Government’’s (Government) subsequent addition of restrictions on loan agreements was either an immediate breach of contract by the Government, or a repudiation of the Government’’s initial contractual obligation.  The Court concluded that the Government’’s added restrictions repudiated the contract, thus moving the date of breach to the time fixed for performance, and therefore, within the statute of limitations’ timeframe. . . .