Rescission

Question 1

What is the definition / principle of rescission

Answer 1

Misrepresentation renders a contract VOIDABLE. The injured party may therefore elect to RESCIND or AFFIRM the contract. RESCISSION “wipes out” the contract, setting the parties back in the position they were in before contracting

Question 2

5 bars to rescission

Answer 2

1. Notification impossible, 2. Affirmation, 3. Lapse of time, 4. full restitution impossible, 5. third party rights

Question 3

Case that shows that the rule that rescission must be notified to the other party will be relaxed where notification was impossible as long as the rescinding party can show sufficient evidence that there was an intention to rescind

Answer 3

Car & Universal Finance v Caldwell (sufficient atht he notified the police and AA)

Question 4

Case that illustrates that rescission is not available once the contract has been affirmed

Answer 4

Long v Llloyd - P went ahead with purchase of lorry after D offered to fix it

Question 5

Case shows that affirmation may occur through lapse of time

Answer 5

Leaf v International Galleries (5 years)

Question 6

Case that illustrated impossibility of full restitution

Answer 6

Clarke v Dickson (3 bottles of wine from a case already drunk)

Question 7

Case that illustrates that rescission is impossible once title in goods has passed to an innocent third party

Answer 7

Car v Universal Finance (title in the car had passed to damages awarded in lieu of rescission)

Question 8

Case that stated (obiter) that rescission is not available to remedy a bad bargain

Answer 8

William Sindall