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A party entitled to rescind the contract, loses the remedy where
- a)he has ratified the contract
- b)third party has acquired right in good faith
- c)contract is not separable and rescission is sought of a part only
- d)all of these.
Correct answer is option 'D'. Can you explain this answer?
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A party entitled to rescind the contract, loses the remedy wherea)he h...
Remedies: The five basic remedies for breach of contract include the following: money damages, restitution, rescission, reformation, and specific performance. A money damage award includes a sum of money that is given as compensation for financial losses caused by a breach of contract.
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A party entitled to rescind the contract, loses the remedy wherea)he h...
Explanation:
There are certain situations where a party entitled to rescind the contract loses the remedy. These situations are discussed below:
Ratification of the Contract:
If a party entitled to rescind the contract has ratified the contract, then he loses the remedy of rescission. Ratification means that the party has accepted the contract after knowing all the facts and circumstances which entitled him to rescind the contract. Once a party ratifies the contract, he cannot rescind it.
Acquisition of Rights by Third Party in Good Faith:
If a third party acquires rights in good faith from the person who has entered into a contract with a party entitled to rescind the contract, then the party entitled to rescind the contract loses the remedy of rescission. This is because the third party has acquired the rights in good faith and he cannot be deprived of his rights.
Non-Separable Contract and Rescission of a Part Only:
If the contract is not separable and the party entitled to rescind the contract seeks rescission of a part only, then he loses the remedy of rescission. This is because the contract cannot be rescinded partially and the party entitled to rescind the contract must rescind the whole contract.
Conclusion:
In conclusion, a party entitled to rescind the contract loses the remedy where he has ratified the contract, a third party has acquired rights in good faith and the contract is not separable and rescission is sought of a part only.
There are certain situations where a party entitled to rescind the contract loses the remedy. These situations are discussed below:
Ratification of the Contract:
If a party entitled to rescind the contract has ratified the contract, then he loses the remedy of rescission. Ratification means that the party has accepted the contract after knowing all the facts and circumstances which entitled him to rescind the contract. Once a party ratifies the contract, he cannot rescind it.
Acquisition of Rights by Third Party in Good Faith:
If a third party acquires rights in good faith from the person who has entered into a contract with a party entitled to rescind the contract, then the party entitled to rescind the contract loses the remedy of rescission. This is because the third party has acquired the rights in good faith and he cannot be deprived of his rights.
Non-Separable Contract and Rescission of a Part Only:
If the contract is not separable and the party entitled to rescind the contract seeks rescission of a part only, then he loses the remedy of rescission. This is because the contract cannot be rescinded partially and the party entitled to rescind the contract must rescind the whole contract.
Conclusion:
In conclusion, a party entitled to rescind the contract loses the remedy where he has ratified the contract, a third party has acquired rights in good faith and the contract is not separable and rescission is sought of a part only.
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A party entitled to rescind the contract, loses the remedy wherea)he has ratified the contractb)third party has acquired right in good faithc)contract is not separable and rescission is sought of a part onlyd)all of these.Correct answer is option 'D'. Can you explain this answer?
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