Rectification and Rescission :
Difference between Rectification and Rescission:
Difference between Rectification and Rescission:
In this article, we are talking about the difference between rectification and rescission:
Here you can find the difference between rectification and rescission
Rectification:
1. Specific Relief Act 1877 section 31-34 are written
about the Rectification.
2. When through fraud or mutual mistake of the parties a
contract or other instruments in the writing are not express the real intention of parties, either party or his representatives make suit to the court for rectified the contract. If a court finds a proved that the contract is made by fraud or misrepresentation or mistake in framing the instrument, then the court gives an order to ascertain the real intention of the parties, and rectification the contract.
3. Rectification of a contract is a discretionary power of the court.
4. Rectification of contract is done by the parties or representative of parties. The party can rectification the contract by there mutual consents and by themselves of they file a suit to court for rectification the contract.
5. Rectification of the contract has no specific time limitations. It was done by the existing contract.
6. If any third party are involved with the contract and he or she acquired the right in good faith and for value. Then the court gives the decision to rectified the contract without prejudice to the rights of the third party.
7. Rectification contract exists after the rectification.
Rescission:
1. Specific Relief Act 1877 section 35-38 are written about Rescission of contract.
2. Any person interested in a contract in writing may sue to have it rescinded, and such rescission may be adjudged by the court in any of the following cases, namely: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.
c. Where a decree for specific performance of a contract of sale, or of a contract to take a lease, has been made, and the purchaser or lessee makes default in the payment of the purchase money or other sums which the court has ordered him to pay.
3. Rescission of the contract is a discretionary power of the court.
4. Rescission of the contract it’s not an automatic process, it must be done by the contract parties.
5. Rescission of the contract must be done by a reasonable time.
6. About rescission of contract there is a difference between Common law and Equity:
a. Common law said when the contract is rescission is considered as a void, but still claim damages.
b. Equity said when the contract is rescission is treated as never existed void abinito, absolves the injury part performance.
7. When the contract is rescission is considered as a cancelled and the parties are under no obligation to perform the contract.
Here we hope that this article helped you understand the Difference between Rectification and Rescission
