§ 19-10 Contract - Rescission

• Library: South Carolina Requests to Charge - Civil (SCBar) (2016 Ed.)

§ 19-10 Contract - Rescission

The right to rescind a contract is based upon equitable principles, and where one party to a contract that fixes no time for its performance by the other seeks to rescind it because of the other's delay in performance, equitable considerations determine whether the contract may be rescinded and good faith on the part of the rescinding party is quite important.

The breach of a contract, to justify its rescission, must be so substantial and fundamental as to defeat the purpose of the contract. Rescission entitles the party to a return of the consideration paid, as well as any additional sums necessary to restore him to the position occupied prior to the making of the contract.

If there was a failure on the part of the plaintiff to comply with the express stipulation of the contract, and if there was no waiver by the defendant of such breach of the contract, then the defendant would be relieved of any legal obligation under the contract. If there was a failure on the part of the defendant to comply with the express stipulation of the contract and if there was no waiver by the plaintiff of such breach of the contract, then the plaintiff would be relieved of any legal obligation under the contract.

It was a party's duty, if he intended to rescind, promptly and unequivocally to notify the other party of his intention to do so. The basis of the rule requiring notice of intention to rescind is to be found in the reluctance of the courts to enforce penalties and forfeitures in matters of contract. The courts generally...