In connection with a contract,what is rescission?
A) a court order to perform one's duties under a contract
B) a return of consideration to the other party
C) an undoing or cancellation of the contract
D) a formation of a second contract identical to the first
E) an order for specific performance

Question

Quizplus · Accepted Answer

Rescission refers to the cancellation or undoing of a contract, typically due to a breach of contract or other legal grounds. It involves returning the parties to their pre-contractual position, including returning consideration (money or other assets) that may have been exchanged. Option A refers to a court order for specific performance, which is a separate legal remedy whereby a court orders a party to fulfill their contractual obligations rather than canceling the contract. Option B is partially correct but does not encompass the full extent of rescission, which involves canceling the entire contract rather than just returning consideration. Option D is incorrect as it suggests creating a second identical contract rather than canceling the original one.

In Connection with a Contract,what Is Rescission