Difference between cancellation and rescission of agreement
4WhatIsRight
(Querist) 01 November 2011
This query is : Resolved
WHAT IS THE DIFFERENCE BETWEEN CANCELLATION OF AN AGREEMENT AND RESCISSION OF AN AGREEMENT.
CAN ANY LAWFUL AGREEMENT BE RESCINDED WITH MUTUAL ASSENT, WITHOUT WRITING, BY RETURNING ALL THE FAVORS RECEIVED UNDER THE AGREEMENT?
CAN NEW AGREEMENT WITH NEW TERMS BE ENTERED INTO THE SAME PARTIES?
WHAT IS THE CORRECT WORD TO BE USED WHEN BOTH THE PARTIES RETURN THE FAVOR RECEIVED UNDER THE AGREEMENT AND MUTUALLY AGREE NOT TO CLAIM ANY RIGHT OR OBLIGATION-cancellation or rescinding
sanjeev murthy desai
(Expert) 01 November 2011
Ans:cancellation means termination of the entire agreement by the act of parties/law. Rescinded of agreement means parties shall have to maintain the status quo with respect to some mutual under standing about some terms specified in the agreement.
CAN ANY LAWFUL AGREEMENT BE RESCINDED WITH MUTUAL ASSENT, WITHOUT WRITING, BY RETURNING ALL THE FAVORS RECEIVED UNDER THE AGREEMENT?
Ans:yes but it is advisable to have in writing.
CAN NEW AGREEMENT WITH NEW TERMS BE ENTERED INTO THE SAME PARTIES?
Ans:In my view there is no harm.
WHAT IS THE CORRECT WORD TO BE USED WHEN BOTH THE PARTIES RETURN THE FAVOR RECEIVED UNDER THE AGREEMENT AND MUTUALLY AGREE NOT TO CLAIM ANY RIGHT OR OBLIGATION-cancellation or rescinding
Ans:status quo
ajay sethi
(Expert) 01 November 2011
rescission by agreement, is a discharge of both parties from the obligations of a contract by a new agreement made after the execution of the original contract but prior to its performance. Rescission by mutual assent is separate from the right of one of the parties to rescind or cancel the contract for cause, or pursuant to a provision in the contract.
The parties to an executory or incomplete contract can rescind it at any time by mutual agreement, even if the contract itself contains a contrary provision.
4WhatIsRight
(Querist) 01 November 2011
dear sir,
contract act says a contract can be rescinded only when law permits it. -WHAT IS MEANT BY ONLY WHEN LAW PERMITS IT?
can a new agreement be made between same parties with new terms after sometime?WHAT IS THE CORRECT WORD TO BE USED, legally, WHEN BOTH THE PARTIES RETURN THE FAVOR RECEIVED UNDER THE AGREEMENT AND MUTUALLY AGREE NOT TO CLAIM ANY RIGHT OR OBLIGATION-cancellation or rescinding
ajay sethi
(Expert) 01 November 2011
when law permits means it is not against the law.
yes new agreement be made after some time
cancellation .
Ravikant Soni
(Expert) 01 November 2011
Rescission by mutual agreement, is a discharge of both parties from the obligations of a contract by a new agreement made after the execution of the original contract but prior to its performance. Rescission by mutual assent is separate from the right of one of the parties to rescind or cancel the contract for cause, or pursuant to a provision in the contract.
Ravikant Soni
(Expert) 01 November 2011
For studying legal aspects of Rescission and cancellation follow the provisions contemplated under sction 62 to 66 of contract act.
4WhatIsRight
(Querist) 01 November 2011
sir in new agreement how shall i refer to this agreement- the mutually cancelled agreement or the agreement rescinded by mutual assent.
can any party ask for performance of agreement cancelled by mutual consent or agreement rescinded by mutual assent
Ravikant Soni
(Expert) 02 November 2011
....can any party ask for performance of agreement cancelled by mutual consent or agreement rescinded by mutual assent...
In both situations no party can seek specific performance of contract stipulated in agreement.
4WhatIsRight
(Querist) 03 November 2011
with respect and regards,i thank all the experts who have spared their valuable time in making sincere efforts to guide and help me.
