Nationwide Business Company and One-State Sales,Inc.,agree to simultaneously rescind their contract and enter into a new agreement under which their duties are the same.Nationwide later sues One-State to enforce the new agreement.The court

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When parties rescind a contract and enter into a new agreement with the same duties, a court may either apply the preexisting rule or allow the rescission. The court may take into consideration the circumstances surrounding the rescission and new agreement before making a decision.