CHANAKYA NATIONAL LAW UNIVERSITY

NYAYA NAGAR,MITHAPUR,PATNA-800001

RESEARCH PROPOSAL SUBMITTED IN

PARTIAL FULLFILMENT COURSE

This rough draft is submitted in partial

fulfilment in Law of Contracts - I for the
completion of B.A., LL.B. (HONS.) course.

LAW OF CONTRACTS

RESCISSION OF CONTRACT

PROPOSAL SUBMITTED BY:

SAJAL SANATAN

ROLL NO.:-2149

SEMESTER:- SECOND

COURSE:-B.A.LL.B(HONS.)

PROPOSAL SUBMITTTED TO

SUSHMITA SINGH

FACULTY OF LAW

INTRODUCTION

In contract law, rescission has been defined as the unmaking of a contract between parties.
Rescission is the unwinding of a transaction. This is done to bring the parties, as far as
possible, back to the position in which they were before they entered into a contract (the
status quo ante.

Rescission is an equitable remedy and is discretionary. A court may decline to rescind a

contract if one party has affirmed the contract by his action 1 or a third party has acquired
some rights or there has been substantial performance in implementing the contract.
Furthermore, because rescission is supposed to be imposed mutually upon both sides to a
contract, the party seeking rescission normally must offer to give back all benefits he or she
has received under the contract (an "offer of tender")

The injured party may rescind the contract by giving notice to the representor. However, this
is not always necessary as any act indicating repudiation, eg notifying the authorities, may
suffice.(Car & Universal Finance v Caldwell) 1

Alternate terms

Virginia uses the term "cancellation" for equitable rescission. Furthermore, a minority of
common law jurisdictions, like South Africa, use the term "rescission" for what other
jurisdictions call "reversing", "overturning" or "overruling" a court judgment. In this sense,
the term means to be set aside or made void, on application to the court that granted the
judgment or a higher court. Applications to rescind a judgment are usually made on the basis
of error or for good cause.

Most common law jurisdictions avoid all this confusion by holding that one rescinds a
contract and cancels a deed (i.e. of real property), and treat rescission as a contractual remedy
rather than a type of procedural remedy against a court judgment.

The right to rescind a contract seems to suppose not that the contract has existed only in
appearance; but that it has never had a real existence on account of the defects which
accompanied it; or which prevented its actual execution.

A contract cannot, in general, be rescinded by one party unless both parties can be placed in
the same situation, and can stand upon the same terms as existed when the contract was
made. The most obvious instance of this rule is, where one party by taking possession, etc.,
has received a partial benefit from the contract.

AIMS AND OBJECTIVE

1. The researcher tends to analyse the rescission of contract.

2. The researcher tends to highlight the Presumed rescission of contract.

1
Car & Universal Finance v Caldwell [1965] 1 QB 525
3. The researcher tends to highlight the cases related to rescission of contract.

HYPOTHESIS

The researcher presumes that in every condition it has to be proved that defendant exerted the
rescission of contract on the plaintiff.

RESEARCH QUESTION

The researcher has formulated following research questions:

1) What are the various reasons for which a contract can be rescinded?
2) When a rescission can be refused?
3) What are the reliefs provided in case rescission?

RESEARCH METHODOLOGY

The researcher has relied upon doctrinal method of research to complete the project.

TENTATIVE CHAPTERISATION

1) INTRODUCTION
2) VOIDABLE CONTRACT
3) SPRCIAL RELIEF ACT 1963
4) SECTION-30 COURT MAY REQUIRE PARTY RESCENDING DO THE EQITY
5) RELATED CASES
6) CONCLUSION

BIBLIOGRAPHY

1) Pollock and Mulla on Indian contract and Specific Relief acts 10 th edn – 1044-4
2) Avtar Singh – Principles of Mercantile law
3) R.K. Bangia