Question

Maya has an agreement with the Atlanta Zoo to supply them with iguanas . Maya believes that her iguanas are on exhibit at the zooHowever , Maya finds out that her iguanas are being fed to the zoo's snakes . She is enraged and cancels the agreement The contract with the zoo includes a damage clause awarding $1000 for wrongfully terminating the contract . The zoo wants their $ 1000Maya makes a new agreement with the zoo to cancel their old agreement in exchange for $300 . This new agreement is

Answer 1

This new agreement is known as Contract rescission. Contract rescission is an agreement to cancel or terminate the already existing contract between contractual parties. It restores the original status between the parties of the contract, i.e. the status which was before the contract was made. It releases the contractual parties from any contractual obligations that they may have had, since the contract is void and no longer valid.

As is the case here, Maya wants to cancel their old agreement. As there was a miss interpretation of the original contract. Maya thought that her iguanas are on exhibit at the zoo, while actually her iguanas are being fed to the zoo's snakes. So if she wrongfully terminating the contract, as per the original contract she needs to pay $1000 to the Atlanta Zoo. So she wants to cancel the existing agreement and create a new agreement to pay $300 to the Atlanta Zoo. So instead of wrongfully terminating the contract she is making an agreement to cancel it. This new agreement is known as Contract rescission.