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After company x enters into a contract with company y, it advises company y of its intent to not honor its contractual obligations. what can company x be sued for?

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MsTeel

Anticipatory repudiation/anticipatory breach

This means that company Y anticipates that company X does not intend to to honor the contract based on what they were told.  Even if the breach hasn't occurred yet, company Y can begin the lawsuit/recovery process because of the anticipation of loss.

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