What action can be taken if one party repudiates a contract?

When one party repudiates a contract, it essentially means that they have indicated an intention not to perform their obligations under the contract. In this situation, the non-repudiating party has the right to discharge the contract. This means they can terminate the agreement and free themselves from any further obligations. By discharging the contract, the non-repudiating party can seek damages for any losses incurred due to the other party's failure to perform.

The option to discharge the contract provides a means for the affected party to protect their interests and mitigate any potential losses resulting from the repudiation. It's a fundamental principle of contract law that when one party does not fulfill their part of the agreement, the other party has the option to end the contract rather than being forced to continue with an arrangement that is no longer valid or enforceable.