Fact Pattern 10-3
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 10-3. 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 10-3 
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 10-3. 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 their contract to the extent that it is executory means that both parties would be released from any future obligations under the contract, but any obligations already performed would not be undone. This is a reasonable solution given that both parties have changed their minds about the contract, but it would be unfair to require either party to perform duties they no longer want to undertake.