Multiple choice

Recission means

  1. substituting a new contract for the old one

  2. cancellation of the old contract

  3. modifying or altering the terms of contract such that it has the effect of substituting a new contract for the old one

  4. dispensing away the performance of the promise made by the other party

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Rescission means cancellation or abrogation of a contract, putting parties back in their original positions before the contract. It differs from noviation (substitution), alteration (modification), or remission (dispensing with performance). Option B correctly states it means cancellation.