Rescission of a contract in the law of contracts

Introduction The answer is yes, Big Banks President can rescind the contract under the following special circumstances. In the law of contracts, when a contract is rescinded, it means that the two parties to the contract have been relieved of their obligation in relation to the initial contract entered in the initial agreement.Advertising We will write a custom essay sample on Rescission of a contract in the law of contracts specifically for you for only $16.05 $11/page Learn More Mutual rescission In some cases, in the law of contracts, the two parties may be discharged from their obligations in an agreement to carry out a consideration either in terms of money or otherwise if before its performance, the two parties mutually agree to follow a new agreement after the completion of an initial agreement through mutual assent. In this case, both parties involved are relieved of their contractual obligations. This is possible even if the contract has express or implied instruction suggesting on the contrary. In this case, there are facts that must be alleged and proved beyond any reasonable doubt, whether the contract is oral or written. Form of the contract The form of the contract can either be written or oral, provided that the circumstances of the contract can be proved; the actions of the parties to the contract will not matter as they can be express or implied. The law of contracts on rescission prevails; regardless of the form of the contract provided, there is consideration and supporting circumstances as evidence. Assent All the parties to the contract must agree on the action to be taken through mutual agreement. This can only be evident when there is a meeting of the both parties. In some cases, one of the parties may repudiate the contract, and the second party impliedly takes the repudiation as a counter offer leading to a rescission of the contract. It should, however, be noted that this must be clearly expressed. Conside ration An agreement between the parties to rescind the contract must be supported by sufficient consideration in terms of an inducement with money or otherwise. Unless one of the parties to the contract carries out his/her part of the agreement, he or she must be adequately compensated without any favors. Operation and effect In the event that there is rescission of the contract, none of the parties will benefit from the deal and gain more than what he/she has invested in carrying out the contract. None of the parties should gain more from the contract in order not to get a higher financial position than what one originally had, prior to the contract.Advertising Looking for essay on business corporate law? Let's see if we can help you! Get your first paper with 15% OFF Learn More Intention of the parties to the contract.  Aim The direction of the contract will always be determined by the aim of entry in the contract by the parties to the contract. In the event that the aim of the contract has been accomplished by the parties, the contract may be made on the grounds of completion of the main objective of the contract. If Big Bank decides to take legal action against rescission of the contract, it will be very hard for Big Bank to convince the judge on its favor. This is because there is express immunity of System INC against contractual obligation. This is seen in the phrase (f) that excludes System INC from any contractual obligation in case of system omission by system INC. For example, â€Å"in no event will systems inc. Be responsible for special, reliance, indirect, incidental, or consequential damages arising out of any act or omission by systems inc. In connection with this agreement, even if systems INC.† This may complicate the ability of Big Bank to get legal redress in terms of receipt of damages. Conclusion There are 3 types of contract performance. One of them is a complete performance where both the parties completely carry out their contractual obligation. The advantage is that both the parties benefit from that as intended. Secondly, the substantial performance is where most of the work or payment is done by one of the party to the contract. In this case, the remedy is always the compensation based on the quantity of consideration. This essay on Rescission of a contract in the law of contracts was written and submitted by user Kiara Prince to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.