Which of the following is true of discharge of performance by agreement?
A) A partially executed contract cannot be rescinded.
B) Mutual rescission requires parties to enter into a second agreement that expressly terminates the first one.
C) A party is allowed to rescind a contract without the consent of the other party.
D) Unilateral rescission is not regarded as breach of contract.

Question

Quizplus · Accepted Answer

Mutual rescission requires the parties to enter into a second agreement that expressly terminates the first one. This discharge of performance by agreement is one of the ways in which a contract can be discharged. A partially executed contract can be rescinded, but it may give rise to claims for damages or restitution. Unilateral rescission (rescission by one party without the consent of the other) is generally not permitted, as it would constitute a breach of contract.

Which of the Following Is True of Discharge of Performance