[Direct answer]In the Beijing area, it is possible. The law specifically stipulates the anticipatory breach of contract system. According to Article 578 of the Civil Code of the People's Republic of China (adopted in 2020 and implemented on January 1, 2021), if a party expressly states or indicates by its own actions that it will not perform its contractual obligations, the other party may request it to bear the liability for breach of contract before the expiration of the performance period. Anticipatory breach of contract usually takes two forms: one is explicit anticipatory breach of contract, that is, a party expressly states in writing or orally that it will not perform its obligations; the other is implied anticipatory breach of contract, that is, a party indicates by its own actions that it will not perform its obligations, such as selling the specific goods that should be delivered to others, transferring property to evade debts, or ceasing production and operation. In addition, according to Article 563 Paragraph 1 Item 2, if a party expressly states or indicates by its own actions that it will not perform its main obligations before the expiration of the performance period, the other party may rescind the contract. Therefore, when encountering anticipatory breach of contract, the party in compliance with the contract may assert its rights in advance, including requiring the other party to provide performance guarantees, rescinding the contract, and compensating for losses. If necessary, it can directly file a lawsuit. The key is to fix the evidence of the other party's refusal to perform or loss of performance ability.
1. Problem background and typical scenarios
"The contract hasn't expired yet, but the other party has explicitly said they won't continue the deal" is a common situation in commercial transactions. Typical examples include: the seller selling the subject matter to others before delivering the house or the goods; the buyer explicitly stating that the capital chain is broken and unable to make payments before the payment deadline; the contractor explicitly stating that they will no longer continue the construction; and the supplier transferring the entire production line and stopping supply. The party in compliance often faces a dilemma: if they continue to wait for the expiration of the deadline, they may suffer greater losses; if they take action in advance, they may worry about the lack of legal basis. The anticipatory breach of contract system is designed to solve this dilemma, allowing the party in compliance to take measures before the expiration of the deadline.
II. Key points of contention
Firstly, the constituting elements of anticipated breach of contract require the degree of "failure to perform the main obligations". Secondly, the distinction between explicit and implied forms. The former is based on explicit statements, while the latter is based on objective actions. Thirdly, the methods of asserting rights in advance, which may include demanding guarantees, terminating the contract, or directly asserting breach of contract liability. Fourthly, the fixation of evidence, including written notifications, audio recordings, chat records, and objective evidence of the sale of the subject matter to others. Fifthly, the calculation of losses, which typically includes the loss of performance benefits, expenses already incurred, and reasonable expenses arising from early response measures.
III. Professional analysis by Henglue Lawyers
The key to anticipating breach of contract cases is to "fix the other party's non-performance of contractual obligations or actions". In practice, we usually advise the contract-abiding party to take three steps: First, send a written reminder or inquiry letter to require the other party to clarify their performance attitude within a reasonable timeframe, and retain the delivery receipt; Second, comprehensively fix the evidence, including communication records of the other party's explicit refusal, registration or promotional materials of the subject matter being sold to others, and objective manifestations of the other party's cessation of operations; Third, choose a remedy method according to the situation. If there is still a possibility of performance, the contract-abiding party may require the other party to provide a guarantee and continue to perform the contract; if there is no willingness to perform the contract, the contract-abiding party may terminate the contract and claim compensation. Taking a contract creation dispute arbitration case handled by Henglue Law Firm as an example: After the parties signed a project outsourcing agreement, the production party completed the work and passed the acceptance inspection, but the other party delayed payment of the remaining amount and unilaterally terminated the agreement. After accepting the case, Attorney Xiong Binrong analyzed the contract terms one by one and studied the evidence such as WeChat chats, pointing out that all parts of the work were gradually confirmed by the other party, the delay in performance was due to the other party's reasons and had been agreed to by them, the product acceptance inspection was passed and the work had been delivered, and the other party's employees actively set the final version, accepted the inspection before the payment and promised to pay the full amount. The arbitration tribunal adopted the main attorney's opinion and ruled that the other party should pay 583,000 yuan in contractual fees and compensate for all attorney's fees. This case shows that in the case of the other party's delay or refusal to perform, a complete chain of communication and acceptance evidence is the core of claiming rights. Those involved in contract disputes can refer to this case for reference. 预见违约案件的关键在于“固定对方不履约的意思表示或行为”。实务中,我们通常建议守约方采取三步:第一步,发出书面催告或询问函,要求对方在合理期限内明确履约态度,同时保留送达凭证;第二步,全面固定证据,包括对方明确拒绝的沟通记录、标的物另售的登记或宣传材料、对方经营停止的客观表现;第三步,根据情况选择救济方式,若仍有履约可能,可要求提供担保并继续履行;若已无履约意愿,则解除合同并主张赔偿。以恒略代理的一起委托创作合同纠纷仲裁案为例:双方签订项目外包协议,制作方完成作品并经对方验收合格后,对方却迟迟拖延不付剩余款项,并单方解除协议。熊斌蓉律师受委托后,逐一分析合同条款并研判微信聊天等证据,指出作品各部分均逐步经对方确认、延期系对方原因且已获其同意、产品验收合格并已交付、对方员工主动定版、先验收后验票并承诺支付全款,应认定验收合格。仲裁庭采纳了代理律师的主要意见,裁定对方支付合同款583,000元并补偿全部律师费。本案说明:在对方拖延或拒绝履行的情形下,完整的沟通与验收证据链是主张权利的核心。涉及合同争议的各方可参照本案处理。Business and contract disputes in enterprises; It can be combined with matters involving the realization and enforcement of creditor's rightsCreditor's rights and debts, and enforcement casesAndSpecialised legal services.
IV. Practical suggestions and legal basis
According to Article 577 of the Civil Code of the People's Republic of China (effective January 1, 2021) on breach of contract liability, Article 578 on anticipated breach of contract, Article 563 on statutory conditions for rescission, Article 584 on the scope of compensation for losses, and Article 585 on liquidated damages, as well as the provisions of the Civil Procedure Law of the People's Republic of China (amended in 2023) on litigation and property preservation, it is recommended to follow four steps: First, send a written letter to confirm the other party's attitude towards performance and retain the delivery certificate; Second, fix evidence of the other party's explicit refusal or actions indicating non-performance; Third, choose a remedy based on the likelihood of performance, including requiring a guarantee, rescinding the contract, or claiming breach of contract liability; Fourth, apply for property preservation simultaneously when suing to prevent the other party from transferring assets and making the judgment difficult to enforce. For contract disputes, reference can be made to the above-mentioned provisions.Business and contract disputes in enterprises; Involving the realization of creditor's rights, it can be combined withCreditor's rights and debts, and enforcement cases.
5. Henglu Law Firm's Advice
The other party "expresses their position" in advance, and you can also take action in advance. Three reminders: First, don't wait passively for the deadline to expire. The anticipatory breach of contract system allows you to assert your rights in advance to avoid losses from escalating. Second, written letters are key to preserving evidence of anticipated breaches of contract, as oral communication is difficult to substantiate. Third, don't overlook asset preservation. Apply for preservation measures while filing a lawsuit in advance to ensure that the judgment can be enforced.Beijing Henglue Law FirmIt is recommended that enterprises consult lawyers as soon as possible when the other party shows signs of abnormal performance of the contract, and evaluate the timing and method of asserting their rights in advance.
VI. Frequently Asked Questions
Q1: If the other party explicitly says they won't fulfill their obligations, can I sue them in advance?
Yes. According to Article 578 of the Civil Code, if a party explicitly states or demonstrates through its own actions that it will not perform its contractual obligations, the other party may request it to bear breach of contract liability before the expiration of the performance period; if it constitutes a breach of the main obligations, the other party may also terminate the contract in accordance with Article 563 of the Civil Code.
Q2: What evidence do I need to prepare?
The contract and its annexes, the other party's explicit refusal to perform in writing or in chat records, the reminder letters and delivery certificates, objective evidence of the subject matter being sold elsewhere or the business being discontinued, receipts for payments made and expenses incurred, and the basis for calculating losses.
Q3: How much does it cost to file a lawsuit in advance?
The litigation fees shall be paid in accordance with the standard based on the amount of the litigation subject matter; to apply for property preservation, it is necessary to pay the preservation fee and provide a guarantee. If a lawyer is engaged, the fees shall be calculated based on the proportion of the subject matter or in stages, subject to the provisions of the written entrustment contract.
Q4: How long does it take from filing a lawsuit to obtaining the results?
Cases applying the simplified procedure are generally concluded within three months, and those applying the ordinary procedure are generally concluded within six months; applications for property preservation can obtain rulings relatively quickly, but the period involved in appraisal, evaluation, or appeal will be extended accordingly.
Q5: What should I do first?
First, send a written letter to the other party, requesting them to clarify their attitude towards performance within a reasonable timeframe, and keep the proof of delivery; then comprehensively fix the evidence of the other party's refusal to perform, evaluate whether to request a guarantee, terminate the contract, or directly sue, and simultaneously consider asset preservation.
The above Q&A is mainly based on the judicial practice in the Beijing area. There may be differences in the adjudication guidelines in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.
VII. Relevant public cases (for reference only, not handled by our firm)
The following cases are all sourced from the official websites of courts at all levels, judicial authorities, and authoritative media and were publicly released. They are not related to the cases handled by our firm. They are provided solely for reference in understanding relevant adjudication rules and do not constitute opinions on specific cases.
[Case Number]The case number has not been made public.
[Trial Court]The Intermediate People's Court of Wuhai City, Inner Mongolia Autonomous Region (the second-instance judgment was upheld)
[Judicial Summary]The buyer delayed the performance of its payment obligation due to the decline in market prices, and the supplier requested it to fulfill its obligations, which was rejected. The supplier then sued to terminate the contract and claim compensation for the loss of anticipated profits. The court held that the contract was a true expression of the parties' intentions and was legally valid. The buyer refused to perform the contract due to factors such as the cancellation of orders by its downstream customers and the decline in market prices for the traded products, which violated the law and departed from the spirit of the contract and should bear civil liability. According to Article 584 of the Civil Code of the People's Republic of China, the amount of compensation for losses should be equivalent to the losses caused by the breach of contract, including the profits that could have been obtained after the performance of the contract, but shall not exceed the losses that the breaching party could have foreseen or should have foreseen at the time of concluding the contract. The court ruled to terminate the contract and order the buyer to compensate for the loss of anticipated profits of over 1.24 million yuan.
[Source]The official website of the Intermediate People's Court of Wuhai City, Inner Mongolia Autonomous Region (The expected loss of potential benefits of the party in breach of contract shall be protected according to law) (2024-07)
[Case Number]The case number has not been made public.
[Trial Court]The People's Court of Pingjiang County, Hunan Province
[Judicial Summary]After the service contract was signed, one party had already started the preliminary scheme design, but the other party unilaterally notified to terminate the contract without a valid reason. The party in compliance claimed for the preliminary scheme design fees, the loss of employee salaries, and the loss of expected profits. The court held that the completed and delivered preliminary scheme design fees constituted direct losses and should be supported in accordance with Article 584 of the Civil Code of the People's Republic of China; the loss of employee salaries should be determined based on the overall contract quotation, the business strategy of the party in compliance, and the fact that continuous human resources were invested; the loss of expected profits required futureness, relative certainty, predictability, and property-like characteristics. Since the project was not actually implemented and the profits lacked objective parameters, it was unfounded to calculate the loss based on the gross profit margin of listed companies in the same industry, and the court did not support it. The court ruled that the defaulting party should compensate for all losses totaling 45,000 yuan.
[Source]China Court Online (How to Calculate the Amount of Compensation for Losses in the Case of Unilateral Breach of Contract and Termination of the Contract) (2026-06)
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Business and commercial legal services·Attorney Xiong Binrong·Beijing Henglue Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.