Rex contracts with Spicy Pizza to deliver its products. After the deal has been partially performed, both parties inform each other that they would like to cancel the contract. Rex and Spicy may rescind
A) their entire contract.
B) their contract to the extent that it is executory.
C) none of their contract.
D) their contract to the extent that it has been executed.

Question

Quizplus · Accepted Answer

Rescission is the cancellation of a contract by mutual agreement of the parties. In this case, since the contract has only been partially performed, it is still executory, meaning that there are still obligations that need to be fulfilled. Therefore, Rex and Spicy may rescind their contract to the extent that it is executory, meaning that they are released from any future obligations under the contract but are still responsible for any obligations that have already been performed.

Rex Contracts with Spicy Pizza to Deliver Its Products