What is rescission as an equitable remedy?

Rescission sets the contract aside and restores both parties as far as possible to the position they occupied before it was made, so that it is treated as never having bound them.

In what circumstances is rescission available?

It is available where the contract is voidable, principally for misrepresentation, duress, undue influence or certain kinds of mistake, and it is granted at the discretion of the court.

State the four bars to rescission.

Rescission is barred by affirmation of the contract, by lapse of time, by the impossibility of restoring the parties to their original positions, and by the intervention of third party rights acquired for value without notice.

What is rectification?

Rectification is an equitable remedy correcting a written document so that it records what the parties had actually agreed, where the writing fails through a mistake to express their common intention.

WJEC A-Level Law 603-1978-1

Law Making in Wales and the UK

Topic overview Legal rules, sources of law and the rule of law Parliamentary sovereignty, the separation of powers and the Royal Prerogative The composition and role of Parliament The legislative process at Westminster The Senedd and law making in Wales The devolution settlement and the role of the Supreme Court Influences on law making and law reform

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Human Rights: EnforcementHuman rights

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Contract: Rules and TheoryContract

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Contract: RemediesContract

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Criminal Law: DefencesCriminal

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Contract: Remedies

Rescission and rectification

3 things to know
A2 Units 3 and 4

Overview

Rescission as an equitable remedy, four bars to rescission and three general principles governing every equitable remedy.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

Distinguish rescission from termination for breach.

Key term

Why is rescission described as a discretionary remedy?

Key term

Distinguish rectification from the interpretation of a contract.

Questions from this subtopic

Each one with the model answer underneath.

1
What is rescission as an equitable remedy?
Model answer
Rescission sets the contract aside and restores both parties as far as possible to the position they occupied before it was made, so that it is treated as never having bound them.
2
In what circumstances is rescission available?
Model answer
It is available where the contract is voidable, principally for misrepresentation, duress, undue influence or certain kinds of mistake, and it is granted at the discretion of the court.
3
State the four bars to rescission.
Model answer
Rescission is barred by affirmation of the contract, by lapse of time, by the impossibility of restoring the parties to their original positions, and by the intervention of third party rights acquired for value without notice.
4
Distinguish rescission from termination for breach.
Model answer
Rescission undoes the contract from the outset and returns what was transferred under it, whereas termination for breach ends future obligations only and leaves accrued rights and the clauses governing breach in place.
5
Why is rescission described as a discretionary remedy?
Model answer
It is equitable, so the court considers the conduct of both parties, any delay, and the effect on third parties, and may refuse it or award damages in its place where that produces a fairer result.
6
What is rectification?
Model answer
Rectification is an equitable remedy correcting a written document so that it records what the parties had actually agreed, where the writing fails through a mistake to express their common intention.

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Law Making in Wales and the UK

Delegated Legislation

Statutory Interpretation

Judicial Precedent

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