Anticipatory breach refers to a situation where one party to a contract repudiates it before the performance is due. In such a case, the innocent party (promisee) has the right to either terminate the contract or keep it alive. If the promisee chooses to keep the contract alive, the promisor remains liable to perform his obligations under the contract.

However, if during the time the contract remains open, some event happens that discharges the promisor from his liability, the contract becomes void. This means that the contract no longer exists, and neither party has any obligations under it.

Explanation:

The concept of anticipatory breach is based on the principle of freedom of contract. It recognizes that parties to a contract have the right to agree on the terms of their agreement and to enforce those terms against each other. When one party repudiates the contract before performance is due, it amounts to a breach of the agreement.

In such a situation, the innocent party has the right to terminate the contract or keep it alive. If the promisee elects to keep the contract alive, the promisor remains liable to perform his obligations under the contract. However, if some event happens during the time the contract remains open that discharges the promisor from his liability, the contract becomes void.

For example, if the subject matter of the contract is destroyed or becomes illegal or impossible to perform, the promisor is discharged from his liability. In such a situation, the contract becomes void, and neither party has any obligations under it.

Conclusion:

In conclusion, if during the time the contract remains open, some event happens that discharges the promisor from his liability, the contract becomes void. This means that the contract no longer exists, and neither party has any obligations under it. It is important to note that this rule applies only if the promisee elects to keep the contract alive after the anticipatory breach. If the promisee chooses to terminate the contract, the contract is terminated, and the promisor is liable for damages.