Rescission of contracts may be allowed if:
A. Where the contract is voidable at the instance of the plaintiff
B. When the contract is void
C. Where the third party acquire the interest in the contract in good faith
D. All of the above
Answer: Option A
Solution (By Examveda Team)
Rescission of contracts refers to the cancellation of a contract, returning the parties to the positions they were in before the contract was made.Rescission may be allowed if:
Where the contract is voidable at the instance of the plaintiff: This means that if the contract can be voided by the plaintiff, rescission can be sought. This typically happens in cases of misrepresentation, fraud, undue influence, or mistake.
Option B: When the contract is void, rescission is generally not required because a void contract is already considered legally unenforceable.Option C: If a third party acquires an interest in the contract in good faith, rescission may not be allowed to protect the third party's rights.Therefore, the correct answer is Option A: Where the contract is voidable at the instance of the plaintiff.
This Question Belongs to Law >> Specific Relief Act
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Comments (1)
Which section of the Specific Relief Act provides for grant of temporary and permanent injunctions:
A. Section 35
B. Section 36
C. Section 37
D. None of the above
Which of the following statements is wrong? Perpetual injunction
A. Is granted by a decree
B. Can be granted without notice to and hearing the defendant
C. Can never be granted without notice to and hearing the defendant
D. Can be granted on merits only
Suit for specific performance is claimed when applicant is . . . . . . . . .
A. Necessary party
B. Proper party
C. Neither (A) nor (B)
D. Both (A) and (C)
A. In a contract, where plaintiff has been given an unfair advantage over the defendant
B. In a case where the contract is not enforceable at the instance of the other party
C. Where the defendant entered into the contract under circumstances which though not rendering the contract voidable, makes it inequitable to enforce specific performance
D. Where performance of the contract would involve some hardship on the defendant which he did not foresee, whereas its non-performance would involve no such hardship on the plaintiff
The answer shall be (a) Where the contract is voidable at the instance of the plaintiff.
Please refer to section 27 of the Specific Relief Act, 1963.
(1) Any person interested in a contract may sue to have it rescinded, and such rescission may be adjudged by the court in any of the following cases, namely:--
(a) where the contract is voidable or terminable by the plaintiff;
(b) where the contract is unlawful for causes not apparent on its face and the defendant is more to blame than the plaintiff.
(2) Notwithstanding anything contained in sub-section (1), the court may refuse to rescind the contract--
(a) where the plaintiff has expressly or impliedly ratified the contract; or
(b) where, owing to the change of circumstances which has taken place since the making of the contract (not being due to any act of the defendant himself), the parties cannot be substantially restored to the position in which they stood when the contract was made; or
(c) where third parties have, during the subsistence of the contract, acquired rights in good faith without notice and for value; or
(d) where only a part of the contract is sought to be rescinded and such part is not severable from the rest of the contract.
Explanation.--In this section "contract" in relation to the territories to which the Transfer of Property Act, 1882 (4 of 1882), does not extend, means a contract in writing.