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Rescission of the Contract means -
Question

Rescission of the Contract means -

A.

The renewal of the original contract

B.

Cancellation of contract

C.

Alteration of contract

D.

Substitution of a new contract in place of the earlier one

Correct option is B

Rescission of the contract means the cancellation of the contract. When a contract is rescinded, it is declared void from the beginning (ab initio), effectively canceling all obligations and returning the parties to their pre-contractual positions. This legal remedy is often sought when a contract is found to be voidable due to factors like misrepresentation, mistake, or undue influence.
Information Booster: Rescission is a common remedy in contract law used to terminate the contractual relationship between the parties when one party has committed a breach, or when the contract is voidable for other legal reasons. The aim is to restore the parties to the status quo as if the contract had never been made.
Additional Knowledge:
· (a) Renewal of original contract: Refers to extending the duration or terms of a contract, not its cancellation.
· (c) Alteration of contract: Involves changing the terms of the contract while keeping it in force.
· (d) Substitution of a new contract: This refers to novation, where a new contract replaces an existing one.

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