What does renunciation breach of contract refer to?

Renunciation breach of contract refers specifically to a situation where one party clearly indicates that they will not fulfill their obligations as outlined in the contract. This is recognized as a form of anticipatory breach because it implies a refusal to perform, even if the actual time for performance has not yet arrived. By explicitly refusing to perform their contractual duties, the party creates a legal situation where the other party can seek remedies for the breach, such as damages or termination of the contract.

In contrast, the other options focus on different concepts. Refusing to renegotiate does not constitute a breach but rather a refusal to engage in discussions about altering the terms of the contract. Terminating a contract for convenience usually involves a clause in the contract that allows for termination under specified conditions, which differs from a unilateral refusal to perform. Offering a settlement instead of performance may suggest a willingness to resolve the issue without fulfilling the original terms, which does not align with the definition of renunciation as it relates to a direct refusal to perform. Thus, the correct understanding of renunciation breach is centered around the outright indication of non-performance.