Question

In an agreement signed on February 8, VSU hired Bob Bowdell to be head football coach starting on March 1 and continuing through February 28 of the following year, at an annual salary of $500,000 . On February 15, the president of VSU learned that another, much more successful, football coach was available. VSU struck a deal with him on February 18, and that same day informed Bowdell that his services would not be needed. Today is February 19

A. VSU has breached the contract.
B. VSU's action constitutes anticipatory repudiation.
C. VSU will not have breached the contract until March 1, or perhaps March 2
D. A and B

Answer 1

VSU's action in informing Bob Bowdell that they will not require his services, before the start date, is a clear case of breach of contract and anticipatory repudiation, since they indicated they would not perform under the contract's terms.

Step-by-step explanation:

VSU's action constitutes a breach of contract, which is known as anticipatory repudiation. 'Anticipatory repudiation' occurs when one party unequivocally indicates that they will not perform their obligations under the contract before the performance is due. Since VSU informed Bob Bowdell that his services would not be needed before the effective date of the agreement, they have effectively indicated that they will not honor the contract when the time comes for performance to begin.

Therefore, the correct options are:

• VSU has breached the contract.
• VSU's action constitutes anticipatory repudiation.