Straitedge Toolmakers,Inc.,contracts to sell its assets to Tru-Level Hardware Corporation.Before either party has performed,rescission of this contract requires
A)a mutual agreement to rescind.
B)an accord and satisfaction.
C)a novation.
D)commercial impracticability.

Question

Quizplus · Accepted Answer

Since neither party has performed yet, the contract can be rescinded by mutual agreement between the parties. This means they both agree to cancel the contract and are released from their obligations under it. The other options such as accord and satisfaction, novation, and commercial impracticability typically apply when one or both parties have partially or fully performed under the contract.