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A contract is discharged by rescission which means the
- a)Change in one or more terms of the contract.
- b)Acceptance of lesser performance.
- c)Abandonment of rights by a party.
- d)Cancellation of the existing contract.
Correct answer is option 'D'. Can you explain this answer?
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A contract is discharged by rescission which means thea)Change in one ...
Discharge of a Contract by Rescission
When a contract is discharged by rescission, it means that the existing contract is cancelled. This can happen in several ways, such as:
Mutual Agreement
Both parties agree to cancel the contract and release each other from their obligations.
Breach
If one party breaches the contract, the other party may have the right to cancel the contract.
Mistake
If there was a mistake in the contract, such as a mutual mistake or a unilateral mistake by one party, the contract may be rescinded.
Fraud
If one party was induced to enter into the contract through fraud or misrepresentation, they may be able to rescind the contract.
Duress
If one party was forced to enter into the contract through duress or coercion, they may be able to rescind the contract.
Effect of Rescission
When a contract is rescinded, it is as if the contract never existed. The parties are released from their obligations under the contract, and any consideration that was exchanged must be returned.
For example, if A agreed to sell a car to B for $10,000, and the contract is rescinded, A must return the $10,000 to B, and B must return the car to A.
Conclusion
Rescission is a way to cancel an existing contract. It can happen through mutual agreement, breach, mistake, fraud, or duress. When a contract is rescinded, it is as if the contract never existed, and the parties are released from their obligations under the contract.
When a contract is discharged by rescission, it means that the existing contract is cancelled. This can happen in several ways, such as:
Mutual Agreement
Both parties agree to cancel the contract and release each other from their obligations.
Breach
If one party breaches the contract, the other party may have the right to cancel the contract.
Mistake
If there was a mistake in the contract, such as a mutual mistake or a unilateral mistake by one party, the contract may be rescinded.
Fraud
If one party was induced to enter into the contract through fraud or misrepresentation, they may be able to rescind the contract.
Duress
If one party was forced to enter into the contract through duress or coercion, they may be able to rescind the contract.
Effect of Rescission
When a contract is rescinded, it is as if the contract never existed. The parties are released from their obligations under the contract, and any consideration that was exchanged must be returned.
For example, if A agreed to sell a car to B for $10,000, and the contract is rescinded, A must return the $10,000 to B, and B must return the car to A.
Conclusion
Rescission is a way to cancel an existing contract. It can happen through mutual agreement, breach, mistake, fraud, or duress. When a contract is rescinded, it is as if the contract never existed, and the parties are released from their obligations under the contract.
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A contract is discharged by rescission which means thea)Change in one ...
Let me explain the terms
a) change in one or more terms of contract - Alteration
b) acceptance of lesser performance - remittance
c) abandonment of right by a party - waiver
d) cancellation of existing contract - rescission
so answer is 'd'
a) change in one or more terms of contract - Alteration
b) acceptance of lesser performance - remittance
c) abandonment of right by a party - waiver
d) cancellation of existing contract - rescission
so answer is 'd'
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A contract is discharged by rescission which means thea)Change in one or more terms of the contract.b)Acceptance of lesser performance.c)Abandonment of rights by a party.d)Cancellation of the existing contract.Correct answer is option 'D'. Can you explain this answer?
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