Fact Pattern 10-1
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 10-1.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 10-1 
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 10-1.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

Both parties can rescind their contract only to the extent that it is executory, meaning the part of the contract that has not been performed yet. Any completed performance or delivery cannot be rescinded.