The right of an innocent party to rescind may be lost if the parties cannot be substantially restored to their original positions.

Question

Quizplus · Accepted Answer

This is true. The right to rescind typically allows an innocent party to undo a contract and return any consideration received. However, if it is impossible to restore the parties to their original positions, the right to rescind may be lost. For example, if one party has already consumed or destroyed the consideration received, restoration may be impossible.

The Right of an Innocent Party to Rescind May Be