Penelope agrees to sell 100 pounds of sugar to Vito in June. In May, Penelope discovers there is a major sugar shortage and she would have to pay her supplier 1000 times more than expected. She alerts Vito in May that she does not intend to sell him the sugar. This is an example of:

A) Anticipatory repudiation
B) Tendered repudiation
C) Advance refusal
D) Advance repudiation
E) Preparatory refusal

Anticipatory Repudiation

Occurs when one party to a contract indicates, before the performance is due, that they will not fulfill their contractual obligations.

Sugar Shortage

A situation in which the availability of sugar is significantly less than the consumer demand, often leading to increased prices and supply constraints.

Sell

The act of transferring ownership of a product or service to another individual or entity in exchange for money or other compensation.