Is rescission specific performance?

Is rescission specific performance?

The decision as to whether to seek damages for breach of contract, specific performance or rescission, or some combination of the three, is a strategic one requiring good legal and, at times, tax advice. The key is that rescission, unlike action for damages, requires relatively quick action by the injured party.

Is specific performance an equitable remedy?

Specific performance is a type of equitable remedy available in a breach of contract action. It is a remedy based on the concept of fairness. Specific performance recognizes that money may not adequately compensate the non-breaching party in certain situations.

What happens when the equitable remedy of rescission is applied in a breach of contract case?

Rescission. Rescission is an agreement to void the contract and return both parties to the position they were in prior to the agreement. When the court grants rescission, the contract and the parties’ rights and liabilities under it are cancelled, and any money exchanged must be returned.

What is remedy rescission?

Rescission is a remedy that puts parties in the original position they were in before the contract was entered between them.

What is specific performance in equity?

Related Content. An equitable remedy available for breach of contract. A decree by the court to compel a party to perform its contractual obligations. In the High Court, it may be granted in addition to or instead of damages.

When is specific performance a remedy?

Specific performance is a specialized remedy used by courts when no other remedy (such as money) will adequately compensate the other party. If a legal remedy will put the injured party in the position he or she would have enjoyed had the contract been fully performed, then the court will use that option instead.

Why is rescission an equitable remedy?

Rescission is an equitable remedy which aims to put parties back in the position that they would have been in prior to a contract being made or a gift being extended. There are fewer barriers to rescission in equity than under the common law.

What are equitable remedies for a breach of contract?

The equitable remedies are specific performance (an order directing a person to deliver to the buyer the unique thing the seller contracted to sell), injunction (an order directing a person to stop doing that which he should not do), and restitution (the return by one party of the benefit conferred on him when the …

What are the rules governing rescission?

For the remedy of rescission to be available: the contracting party seeking the remedy must not have affirmed the contract. restitutio in integrum must be substantially possible: both sides of the transaction must be able to be undone.

What is equitable rescission of a contract?

With equitable rescission, the transaction is voidable which means it remains in being until it is rescinded by the Court. In the case of rescission by the parties, the innocent party is only discharged from future performance. In the case of equitable rescission by the Court, the contract is discharged from the beginning and retrospectively.

What are the different types of remedies in contract law?

1 Types of Remedies. Parties must enter legal contracts in good faith. 2 Equitable Remedy. Instead of imposing a fine, equitable remedy is when the court orders the defendant to complete a contract as originally agreed. 3 Specific Performance. 4 Contract Rescission and Reformation. 5 Total Nonperformance by Breaching Party.

What is an equitable remedy in a contract?

Equitable Remedy Instead of imposing a fine, equitable remedy is when the court orders the defendant to complete a contract as originally agreed. This step is taken when payment alone is not sufficient to make up for damages. Equitable relief can also be offered if legal damages are not available.

What is the effect of an order of rescission?

Rescission is an equitable remedy by which contracts and other instruments are set aside by the court. It is an equitable order. The effect of the order is that the instrument is deemed void as and from the outset. It is retrospectively invalidated.