Drain Equipment Inc. contracts to sell its assets to Earth 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)specific performance.

Question

Quizplus · Accepted Answer

A mutual agreement to rescind is required for the rescission of a contract before either party has performed. This means both parties agree to cancel the contract and treat it as though it never happened.