RESCISSION OF CONTRACT: Meaning and effect of rescission of contract
CONTRACT - RESCISSION OF CONTRACT: Meaning and effect of rescission of contract.
"If Exhibit "A" does not constitute "repudiation" of the interest rate in Exhibit "B." It is a "rescission" as defined in Chitty on Contracts, 26th edition, page 1008-1009 paragraphs 1592-1593 to wit:-
"RESCISSION BY AGREEMENT: Where a contract is executory on both sides, that is to say, where neither party has performed whole of his obligations under it, it may be rescinded by mutual agreement, express or implied. The consideration for the discharge is found in the abandonment by each party of his right to performance or his right to damages, as the case may be. A rescission of this nature must be distinguished from a repudiation by one party which the other party may elect to treat as a discharge of the obligation, and from the right to rescind which is given to one party in cases of fraud, misrepresentation, duress and undue influence, and in certain cases of mistake. It depends upon the consent of both parties, to be gathered from their words or conduct and not upon the intimation by one of them that he does not intend to be bound by the agreement.
EFFECT OF RESCISSION: A contract which is rescinded by agreement is completely discharged and cannot be revived. The parties will usually make express provision for the restoration of money paid or for payment for services performed under the contract prior to rescission. ?But in the absence of such provision (express or implied) money paid in pursuance of the abortive contract can be recovered by an action for money had and received, although it is more doubtful whether a claim could be made for payment not yet due in respect of services rendered."
Per TUR, J.C.A. (Pp.
AONDO v. BENUE LINKS (NIG) LTD
CITATION: (2019) LPELR-46876(CA)