Certified Professional Contract Manager (CPCM) 2025 – 400 Free Practice Questions to Pass the Exam

Repudiation in a contract occurs when one party's actions or behaviors create doubt in the mind of the other party regarding their commitment to fulfilling the contractual terms. This can manifest in various ways, such as a party indicating that they will not perform their obligations or failing to act in accordance with the contract's terms.

The core concept is that the repudiating party’s conduct suggests that they do not intend to perform, which grants the other party the right to treat the contract as terminated. This reaction is based not only on explicit statements but also on implicit behaviors that signal a lack of intent to fulfill contractual duties.

The other scenarios presented, such as mutual termination, modification of terms, or denial of payment after service, do not demonstrate repudiation. Mutual termination indicates consensus to end the contract rather than one side's breach or withdrawal. Changes to contract terms reflect agreement to alter existing obligations, and denial of payment may pertain to issues of performance or breach but doesn't inherently indicate one's refusal to fulfill contractual obligations as repudiation does.