Which of the following describes anticipatory breach?

Anticipatory breach occurs when one party communicates to the other party their intention not to fulfill their contractual obligations before the performance is due. This preemptive indication allows the other party to seek remedies for the breach, such as claiming damages or even terminating the contract, without having to wait for the actual date of performance.

This concept is significant in contract law because it recognizes that a breach can occur without an outright failure to perform; instead, the mere indication of not performing is sufficient to trigger the other party's legal rights. Understanding anticipatory breach helps parties mitigate risks and take protective measures in contracts.

The other options describe different concepts. For instance, failing to perform at the stipulated time refers to a breach occurring when a party simply does not meet the deadline, rather than indicating an intent not to perform beforehand. Making performance impossible involves situations where unforeseen circumstances render fulfillment of the contract impossible, rather than an intention not to perform. Completing contractual obligations ahead of time does not imply any wrongdoing or anticipation of breach; rather, it could reflect good performance or efficiency.