The right to rescind a contract may be lost if:
A)the innocent party fails to act to bring about rescission.
B)it is impossible to restore the parties to their previous positions.
C)the innocent party chooses to continue with the transaction.
D)all of the above.

Question

Quizplus · Accepted Answer

All three options listed can result in the right to rescind a contract being lost. If the innocent party fails to act to bring about rescission, such as waiting too long or not providing proper notice, they may lose the right to rescind. If it is impossible to restore the parties to their previous positions, such as in the case of destruction of the subject matter, rescission may not be possible. Finally, if the innocent party chooses to continue with the transaction, they may lose the right to rescind as they have essentially accepted the terms of the contract.

The Right to Rescind a Contract May Be Lost If