Anticipatory Breach

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(of contract) a breach committed before the arrival of the actual time of required performance. It occurs when one party by declaration repudiates his contractual obligation before it is due.
The repudiation required is “a positive statement indicating that the promisor will not or cannot substantially perform his contractual duties.” Restatement (Second) Contracts §318(a); See U.C.C. §2-610. In the case of a bilateral contract, the aggrieved party may urge the repudiating party to perform without giving up the right to claim a present breach. Restatement (Second) Contracts §320; U.C.C. §2-610(b). If, however, the repudiating party withdraws his repudiation before there has been a material change in position, the repudiation will be nullified. Restatement (Second) Contracts §319; U.C.C.
§2-611. A repudiation will justify a demand by the aggrieved party for an “assurance of performance” under U.C.C. §2-609. Where the anticipatory repudiation is by the party’s conduct rather than by declaration it is called voluntary disablement. Thus, in a contract for the sale of land the seller breaches through voluntary disablement if he transfers land to a third party during the executory interval before performance is due on the first contract.
In some jurisdictions no distinction is drawn between the two forms of preliminary breach.

In contract law, an action that shows a party's intention to fail to perform or fulfill its contractual obligations to another party. An anticipatory breach negates the counterparty's responsibility to perform its requirements under the contract. By demonstrating a party's intention to breach, the counterparty may also begin legal action.

Also referred to as an "anticipatory repudiation."

Investopedia Says:
An anticipatory breach occurs when a party demonstrates its intention to break a contract. However, vocal or written confirmation is not required, and failure to perform an obligation in a timely matter can result in a breach. By declaring an anticipatory breach, the counterparty may begin legal action immediately rather than waiting until a contract's terms are actually broken.

For example, if Company A refuses to pay substantial interim payments to Company B, Company B can begin legal action due to anticipatory breach. Company B could also stop performing its contractual obligation, potentially saving time and or money.

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