A party that rescinds a contract without proper grounds for rescission is liable for damages for breach of the contract.

Question

Quizplus · Accepted Answer

This is true. If a party rescinds a contract without proper legal grounds, they are essentially breaching the contract and can be held liable for damages. It is important to have proper legal grounds for rescission, such as fraud or mutual mistake, to avoid breaching the contract and facing legal consequences.

A Party That Rescinds a Contract Without Proper Grounds for Rescission