What is meant by "anticipatory breach" in contract law?

Anticipatory breach in contract law occurs when one party clearly indicates that they will not fulfill their obligations under the contract before the performance is due. This indication can be made through explicit statements or through conduct that demonstrates an intention not to perform. By recognizing a party’s unwillingness to perform, the other party is allowed to take legal action for breach of contract even before the performance is due. This principle is meant to provide an opportunity for the non-breaching party to take necessary steps, such as seeking alternate arrangements or claiming damages, without having to wait for the actual breach to occur.

In this context, the other options pertain to different aspects of contract law but do not relate to the definition of anticipatory breach. Ending a contract early by mutual agreement, a breach that occurs unexpectedly, or fulfilling obligations ahead of schedule do not capture the essence of anticipatory breach, which specifically involves a clear signal from one party about their unwillingness to perform.