Multiple choice

A contract is discharged by rescission, which means

  1. change in one or more terms of the contract

  2. acceptance of lesser performance

  3. abandonment of rights by a party

  4. cancellation of the existing contract

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

Rescission means cancellation of a contract by mutual agreement of both parties. When parties mutually agree to abandon their contractual rights and obligations, the contract is rescinded. This is different from alteration (A) which modifies terms, accord (B) which accepts different performance, or abandonment by one party (C) - rescission requires mutual consent to cancel entirely.