Sally contracts with Tasty Pizza Company to deliver its products. Both parties change their minds,however,and inform each other that they would like to cancel the contract.
-Refer to Fact Pattern 12-3. Sally and Tasty
A)may rescind their entire contract.
B)may rescind their contract to the extent that it is executory.
C)must perform their entire contract.
D)must perform the part of their contract that is executory.

Question

Quizplus · Accepted Answer

If both parties have not fully performed their obligations under the contract, they may rescind the contract to the extent that it is still executory. However, if both parties have fully performed their obligations, they cannot rescind the contract and must fulfill their obligations.

Sally Contracts with Tasty Pizza Company to Deliver Its Products