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_________ of a contract takes place when all or some of the terms of the contract are cancelled.
- a)Novation
- b)Alteration
- c)Merger
- d)Rescission
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
_________ of a contract takes place when all or some of the terms of t...
Rescission in contract law refers to the termination or cancellation of a contract. The word rescission comes from the word “rescind” which means to cancel or annul. The purpose of contract rescission is to restore the parties to their original status before the contract was made.
Most Upvoted Answer
_________ of a contract takes place when all or some of the terms of t...
'all' or 'some' cancellation is always Recession. And there isn't any specification of change in terms that would lead to alterations or substitution of contract that would lead to novation. this option D.
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_________ of a contract takes place when all or some of the terms of t...
Understanding Rescission of a Contract
Rescission is a legal remedy that allows parties to a contract to cancel or annul the agreement, restoring them to their original positions before the contract was made.
Key Aspects of Rescission:
- Definition: Rescission refers to the cancellation of a contract, either in part or in whole, due to various reasons such as misrepresentation, fraud, undue influence, or mutual consent.
- Legal Grounds: A contract can be rescinded if it is found to be voidable. This means that one party has the option to affirm or cancel the agreement based on specific legal grounds.
- Process: To initiate rescission, the affected party must typically notify the other party of their intention to rescind. This must be done within a reasonable time frame and often involves filing a lawsuit if there is a disagreement.
- Restoration: Upon rescission, both parties are required to return any benefits received under the contract. This aims to restore them to their pre-contractual state.
- Contrast with Other Terms:
- Novation involves replacing an old contract with a new one, transferring obligations and rights.
- Alteration refers to changing the terms of a contract with mutual consent.
- Merger occurs when a contract is absorbed into a larger agreement or when one party’s rights are extinguished.
Conclusion:
Rescission is a critical concept in contract law that provides a mechanism for parties to withdraw from agreements that are no longer valid or fair. Understanding its implications can help in making informed decisions in contractual relationships.
Rescission is a legal remedy that allows parties to a contract to cancel or annul the agreement, restoring them to their original positions before the contract was made.
Key Aspects of Rescission:
- Definition: Rescission refers to the cancellation of a contract, either in part or in whole, due to various reasons such as misrepresentation, fraud, undue influence, or mutual consent.
- Legal Grounds: A contract can be rescinded if it is found to be voidable. This means that one party has the option to affirm or cancel the agreement based on specific legal grounds.
- Process: To initiate rescission, the affected party must typically notify the other party of their intention to rescind. This must be done within a reasonable time frame and often involves filing a lawsuit if there is a disagreement.
- Restoration: Upon rescission, both parties are required to return any benefits received under the contract. This aims to restore them to their pre-contractual state.
- Contrast with Other Terms:
- Novation involves replacing an old contract with a new one, transferring obligations and rights.
- Alteration refers to changing the terms of a contract with mutual consent.
- Merger occurs when a contract is absorbed into a larger agreement or when one party’s rights are extinguished.
Conclusion:
Rescission is a critical concept in contract law that provides a mechanism for parties to withdraw from agreements that are no longer valid or fair. Understanding its implications can help in making informed decisions in contractual relationships.
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_________ of a contract takes place when all or some of the terms of the contract are cancelled.a)Novationb)Alterationc)Mergerd)RescissionCorrect answer is option 'D'. Can you explain this answer?
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_________ of a contract takes place when all or some of the terms of the contract are cancelled.a)Novationb)Alterationc)Mergerd)RescissionCorrect answer is option 'D'. 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 _________ of a contract takes place when all or some of the terms of the contract are cancelled.a)Novationb)Alterationc)Mergerd)RescissionCorrect answer is option 'D'. 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 _________ of a contract takes place when all or some of the terms of the contract are cancelled.a)Novationb)Alterationc)Mergerd)RescissionCorrect answer is option 'D'. Can you explain this answer?.
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