Larry enters into a contract with Motivational Education Services to host a panel discussion at a sales conference. When the conference is postponed indefinitely, Larry asks a court to cancel the contract and return the parties to the positions that they held before its formation. This request involves:

This MCQ has following options.

a. specific performance.

b. rescission.

c. an action that the court cannot order.

d. an injunction.

The answer is b. rescission.

Explanation:

Recission is a term used in contract law which refers that contractual parties can cancel the contract. The unwinding of a transaction is Rescission. The parties may rescind if they are victims of factors like mistake, misinterpretation or unnecessary influence etc.

The question is missing the below options:

a. specific performance.

b. rescission.

c. an action that the court cannot order.

d. an injunction.

The correct option is B, rescission

Explanation:

Rescission is restoration of parties to an agreement to their erstwhile position prior to the contract.

This is similar to repudiation of contract, the difference is that , in repudiation a party  only does something that would make honoring the contract impossible rather expressly requesting for contract cancellation as in the case of Larry and Motivational Education Services.

At common law, such rescission can only entertained if the contract involves fraudulent intent or entered into under duress.

Duress is when one is when one's consent to an agreement is forcefully taken.