Recission

Question 1

What is Rescission?

Answer 1

Setting aside a contract as if it never existed

Question 2

When is rescission available?

Answer 2

If vitiating factors found:
- Duress (threats)
- Undue Influence (relationship, trust, reliance)
- Unconscionable Dealing (disadvantaged, lack of understanding)

Question 3

Are damages available for recission?

Answer 3

NO b/c contract ‘never’ existed

Question 4

What is the condition to allow for recission? (Common Law)

Answer 4

If the parties OG positions can be re-established

Question 5

What is recission for equity?

Answer 5

Majority of conditions can be restored (Substantial Recission)

Typically for returning property, returning money, rent payments

Question 6

Explain the difference in Equity and Common Law recission using Banana Box

Answer 6

Precise Restoration = Bananas fully returned to seller and buyer gets refund

Substantial restoration = Bananas returned to seller + compensate a little from buyer

Question 7

When is Substantial/Precise Restoration given?

Answer 7

• If plaintiff would NOT have entered the contract –> precise restoration
• If plaintiff would have entered contract on LIMITED basis –> substantial rrecission

Question 8

What are the 3 limitations to Recission?

Answer 8

1. Substantial Restoration is NOT even possible
2. Affirmation
3. Third Party Rights

Question 9

How does Affirmation affect the ability for recission?

Answer 9

• Henjo –> Inferred from lapse of time