Fact Pattern 11-3 Sally contracts with Tasty Pizza Company to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract.
-Refer to Fact Pattern 11-3.Sally and Tasty
A) may rescind their entire contract.
B) may rescind their contract to the extent that it is executory.
C) must perform their entire contract.
D) must perform the part of their contract that is executory.

Question

Fact Pattern 11-3 Sally contracts with Tasty Pizza Company to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract.
-Refer to Fact Pattern 11-3.Sally and Tasty​ 
A) ​may rescind their entire contract. 
B) ​may rescind their contract to the extent that it is executory. 
C) ​must perform their entire contract. 
D) ​must perform the part of their contract that is executory.

Quizplus · Accepted Answer

Rescinding a contract means cancelling it and restoring the parties to the position they were in before entering into the contract. If the contract is fully executed, it cannot be rescinded. However, if the contract is partly executory (meaning, some actions under the contract have not been performed yet), the parties can rescind the contract regarding those unperformed actions. Therefore, Sally and Tasty can rescind their contract to the extent that it is executory.

Fact Pattern 11-3 Sally Contracts with Tasty Pizza Company to Deliver