Rescission requires which of the following?

• A. Both parties partially performed
• B. Both parties consent
• C. No consideration if either fully performed
• D. A new contract is formed

Answer: (B)

Rescission is about undoing a contract and returning both parties to their pre-contract positions. The essential requirement is that both sides agree to terminate the agreement and give back what was exchanged, so the deal is canceled as if it never happened. Without that mutual consent, you haven’t truly rescinded the contract; you’d just have a contract breach or other remedy.

Partial performance doesn’t itself create rescission; you still have a contract unless both parties agree to unwind it. The fact that one party has fully performed doesn’t automatically remove the need for mutual agreement to rescind, and rescission is not the same as creating a new contract. The renewal idea would be a different arrangement (like a new contract or novation), not rescission.