CA Foundation Exam > CA Foundation Questions > Brown promises to sell his house to Crown for...
Start Learning for Free
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?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
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- No Performance Required: Since the contract was not performed, the agreement can simply be rescinded without further obligations.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.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
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?
Question Description
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? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 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? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?.
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? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 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? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?.
Solutions for 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? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of 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? defined & explained in the simplest way possible. Besides giving the explanation of
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?, a detailed solution for 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? has been provided alongside types of 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? theory, EduRev gives you an
ample number of questions to practice 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? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup