The scenario is as follows: an employer and employee conclude a retention bonus agreement. The employer is in non-compliance with certain material aspects of such agreement. The employee has not accepted such breaches. Until when is the employer entitled to retract its position?
Traditionally it is said that repudiation is only ‘completed’ or rendered ‘absolute’ or ‘definite’ by its acceptance by the innocent party. Until there has been such acceptance the repudiation may be nullified or undone by the unilateral act of the innocent party (rejection of the repudiation) or the repudiator him-or herself (retraction of the repudiation). A repudiation is also said to lapse if it is not acted upon by the innocent party within a reasonable time.