CMA Foundation · Fundamentals of Business Laws and Business Communication · Discharge of Contracts
Under the Indian Contract Act, 1872, in what manner may the rescission of a voidable contract be communicated or revoked?
Rescission of a voidable contract may be communicated or revoked in the same manner and under the same rules that apply to communicating or revoking a proposal. Section 66 prescribes no court notice, written consent or fixed time limit.
- AOnly by a written notice served through a court
- BOnly with the written consent of the other party
- CIn the same manner and subject to the same rules as apply to communication or revocation of a proposalCorrect
- DOnly by registered post within 30 days
Explanation
Section 66 states that rescission of a voidable contract may be communicated or revoked in the same manner, and subject to the same rules, as a proposal. The other options add formalities that the section does not prescribe.
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