In a mutual rescission,the parties to a contract:
A) agree to new terms.
B) involve a third party in the contract.
C) agree to undo and cancel a contract.
D) agree to perform a contract a second time under the same terms as the original.
E) agree to a set amount as damages.

Question

Quizplus · Accepted Answer

In a mutual rescission, the parties agree to undo and cancel a contract. This means that both parties are releasing each other from their obligations and the contract is terminated. It is different from agreeing to new terms or performing the contract again, as in those cases the original contract remains in effect with changes or repeat performance. Involving a third party or agreeing to a set amount as damages is also not part of a mutual rescission.

In a Mutual Rescission,the Parties to a Contract