Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corporation. Before either party has performed, rescission of this contract requires
A) a mutual agreement to rescind.
B) an accord and satisfaction.
C) a novation.
D) a settlement agreement.

Question

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corporation. Before either party has performed, rescission of this contract requires​
A) ​a mutual agreement to rescind.
B) ​an accord and satisfaction.
C) ​a novation.
D) ​a settlement agreement.

Quizplus · Accepted Answer

Rescission of a contract before any party has performed requires a mutual agreement to rescind. This means that both parties must agree to cancel the contract.