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Brown promises to sell his house to Crown for Rs. 20,00,000. Later on both of them agreed not to execute the deal; this is known as:-
- a)Novation
- b)Remission
- c)Recession
- d)Alteration.
Correct answer is option 'C'. Can you explain this answer?
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Brown promises to sell his house to Crown for Rs. 20,00,000. Later on ...
Understanding Rescission in Contracts
In the context of contractual agreements, rescission refers to the cancellation or annulment of a contract, restoring the parties to their original positions before the contract was made. In this scenario, Brown and Crown agreed not to execute the deal for the house, which is a clear case of rescission.
Key Characteristics of Rescission:
Why Rescission Applies Here:
Other Options Explained:
In conclusion, the correct answer is indeed option 'C', as the agreement not to proceed with the sale constitutes a rescission of the contract.
In the context of contractual agreements, rescission refers to the cancellation or annulment of a contract, restoring the parties to their original positions before the contract was made. In this scenario, Brown and Crown agreed not to execute the deal for the house, which is a clear case of rescission.
Key Characteristics of Rescission:
- Mutual Agreement: Both parties willingly decide to cancel the contract.
- Restoration: The parties are returned to their pre-contractual state, as if the contract never existed.
- Voluntary Nature: Rescission is typically voluntary and does not require legal intervention unless disputes arise.
Why Rescission Applies Here:
- Intent to Cancel: Both Brown and Crown explicitly agreed not to execute the deal, indicating a mutual intention to cancel.
- No Performance Required: Since the contract was not performed, the agreement can simply be rescinded without further obligations.
- Legal Validity: Rescission is a legally recognized remedy in contract law, applicable when both parties consent to the cancellation.
Other Options Explained:
- Novation: Involves replacing one party or obligation with another, which is not the case here.
- Remission: Refers to the relinquishment of a right or claim, not applicable to this mutual agreement.
- Alteration: Involves modifying the terms of a contract, which is not relevant as the contract is being canceled.
In conclusion, the correct answer is indeed option 'C', as the agreement not to proceed with the sale constitutes a rescission of the contract.
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Brown promises to sell his house to Crown for Rs. 20,00,000. Later on both of them agreed not to execute the deal; this is known as:-a)Novationb)Remissionc)Recessiond)Alteration.Correct answer is option 'C'. Can you explain this answer?
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