Rescission

Question 1

Rescission (Definition)

Answer 1

Avoids or undoes a K.

Applies to transfers of property/other instrments (gifts, deeds).

After Rescission you usually got for Restitution.

Question 2

What is the remedy for Rescission

Answer 2

A Court Order that agreement is not enforceable.

If granted the K is gone.

Question 3

Types of Rescission

Answer 3

(1) Both parties agree

(2) A party was fraudulently induced

(3) Unilateral mistake

Question 4

Rescission via Fraud Elements

Answer 4

Party seeking rescission must show:
(1): other K party KNOWINGLY made false rep of MATERIAL fact or concealed material fact despite having duty to disclose

(2): other party misrepped to induce reliance

(3): Seeking party justifiably relied to their detriment; AND

(4): before suing, seeking party restored/offered to restore what he got as party of fraud contract.

Question 5

Rescission via Unilateral Mistake Elements

Answer 5

Seeking Party Must Show:
(1): a basic assumption on which he made the K that has a material effect on the agreement, and EITHER

(2a): effect of mistake makes K unconscionable, or

(2b): other party has reason to know of or his fault caused the mistake

Question 7

Waiver of Rescission

Answer 7

Affirming to contract.

Especially affirming after learning of the grounds for rescission.

Ex. Suing for Breach of K waives rescission. Acknowledging a K was made.