Doctrine of Anticipatory Breach (Blossom Co. vs. Manila Gas Corp.)

The doctrine of anticipatory breach refers to an unqualified and positive refusal to perform a contract, though the performance thereof is not yet due, may, if the renunciation goes into the whole contract, be treated as a complete breach which will entitle the injured party to bring his action at once (Blossom Co. vs. Manila Gas Corp.).
In that case, Blossom & Company, Inc. entered into a contract with Manila Gas Corporation for the sale and delivery of water gas and coal gas tar at stipulated prices for a period of four years. On the second year of the contract, Manila Gas willfully and deliberately refused to deliver any coal and water gas tar to Blossom and Company, Inc. because it was asking for a higher price than what had been previously stipulated by them. The price of its tar products had gone up. We held that:

… even if the contract is divisible in its performance and the future periodic deliveries are not yet due, if the obligor has already manifested his refusal to comply with his future periodic obligations, "the contract is entire and the breach total," hence, there can only be one action for damages. (G.R. No. 143788; September 9, 2005)