Rescission of a Contract

The video tutorial explains the process of rescinding contracts, focusing on the differences between common law and the Uniform Commercial Code (UCC). It highlights that under common law, new consideration is not required if performance hasn't started, allowing parties to agree to rescind with the same formality as the original contract. In contrast, the UCC often requires more formality, especially if the contract falls under the statute of frauds, necessitating new consideration and written agreements.

What is the primary goal of contract rescission?

• To extend the duration of the contract

• To enforce the contract more strictly

• To act as if the contract never existed

• To modify the terms of the contract

Under common law, when is new consideration not required for rescission?

• When the contract is in writing

• When the parties have not begun performance

• When the parties have begun performance

• When the contract has been fully performed

How should the formality of rescission under common law compare to the original contract?

• It should be more formal

• It should be less formal

• It should match the original contract's formality

• It should be in writing regardless

What does the UCC generally require for the rescission of a contract?

• Less formality than the original contract

• No new consideration

• New consideration and written agreement

• Oral agreement only

When is a written agreement required for rescission under the UCC?

• When the parties have not begun performance

• When the original contract was required to be in writing

• When the original contract was oral

• When the contract is under common law