Page:United States Statutes at Large Volume 47 Part 1.djvu/1226

 1202 Post, p. 1337. Ants, p. 1192. Post, p. 1283. Post, p. 1282. Post, p. 1337. Post, p. 1285. Stipulations against right to rescind. Re scission, how effected. Post, p. 1337. Rescission of contracts, see sections 1645 to 1647. Alteration and can- cel lation. Alteration of verbal contract. Written contracts, how modified. Post, p.1337. Cancellation of contracts, see sections 1848 et seq. Ante, p.1198. Par ol eviden ce to alt er writin gs, see s ection 55 0. Extinction by can- cellation, etc. B y una uthor ised al- teration. 72d C ONGRESS. SESS. II. CH. 128 . FEBRUA RY 27, 1933. 2 . If, through the fault of the party as to whom he rescinds, the consideration for his obligation falls, in whole or in part ; 3 . If such consideration bec omes entirely void from any cause ; 4. If such consideration, before it is rendered to him, fails in a mate rial respe ct, f rom any c ause ; or, 5. By consent of all the other parties. CROSS REF ERE NC ES Cancellation of instruments, see sections 1648 et seq. Contract not free, when obtained by mistake, duress, menace, fraud, or undue influence, see section 497. False representation, rescission of insurance policy for, see section 1189. Fa lsity of warranty, rescissi on of ins urance p olicy for, see sec tion 1178. Rescission, see sections 1645 et seq. Stipulation against right to rescind, see section 582. Violation of material warranty, rescission of insurance policy for, see section 1214. SEC. 582. WHEN STIPULATIONS AGAINST RIGHT TO RESCIND DO NOT DEFEAT rr.-A stipulation that errors of description shall not avoid a contract, or shall be the subject of compensation, or both, does not take away the r ight of r escis sion for fraud, nor for mist ake, wher e such mistake is in a matter essential to the inducement of the con- tract, and is nott capable of exact and entire compensation. SEC. 583 . RESCISSION, HOW EFFECTED.-Rescission, when not effected by consent, can be accomplished only by the use, on the part of the par ty res cin din g, of reasonable diligence to comply with the follo wing rules 1. He must rescind promptly, upon discovering the facts which entit le hi m to resc ind, if he is free from duress, menace, undue influence, or disability, and is aware of his right to rescind ; and, 2. He must restore to the other party everything of val ue whi ch he has received from him under the contract ; or must offer to restore the same, upon condition that such party shall do likewise, unless the latter is unable or positively refuses to do so. CROSS REFERENOE ALTERATION AND CANCELLATION SEC. 584 . AL TERATION OF VERBA L CONTRA CT. -A contract not in writing may be altered in any respect by consent of the parties, in writing, without a new consideration, and is extinguished thereby to the extent of the new alteration. SEC. 585. WRITTEN coNTRACTS, now MODIFIED .-A contract in writ- ing may be altered by a contract in writing, or by an executed oral agreement, and not otherwise. CROSS REFE RENCES SEC. 586 . ExTINCrION BY CANCELLATION, ETC .-The destruction or cancellation of a written contract, or of the signature of the parties liable thereon, with intent to extinguish the obligation thereof, extinguishes it as to all the parties consenting to the act. SEC. 587. ExTINCTION BY UNAUTHORIZED ALTERATION .-The inten- tional destruction, cancellation, or material alteration of a written