Page:United States Statutes at Large Volume 76A.djvu/220

–124– -124Subchapter I—General Provisions § 1271. Extinguishment A contract may be extinguished in like manner with any other obligation, and also in the manner prescribed by this chapter. Subchapter II—Rescission § 1291. Extinguishment by rescission A contract is extinguished by its rescission. § 1292. Grounds for rescission A party to a contract may rescind it in the following cases only: (1) if the consent of the party rescinding, or of any party jointly contracting with him, was given by mistake, or obtained through duress, menace, fraud, or undue influence, exercised by or with the connivance of the party as to whom he rescinds, or of any other party to the contract jointly interested with that party; (2) ifJ through the fault of the party as to whom he rescinds, the consideration for his obligation fails, in whole or in part; (3) if the consideration becomes entirely void from any cause; (4) if the consideration, before it is rendered to him, fails in a material respect, from any cause; (5) by consent of all the other parties; or (6) under the circumstances provided for by chapter 45 of this title, relating to sales of goods. § 1293. Stipulations against right to rescind 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 right of rescission for fraud, nor for mistake, where the mistake is in a matter essential to the inducement of the contract, and is not capable of exact and entire compensation. § 1294. Procedure for rescission Rescission, when not effected by consent, may be accomplished only by the use, on the part of the party rescinding, of reasonable diligence to; (1) rescind promptly, upon discovering the facts which entitle him to rescind, if he is free from duress, menace, undue influence, or disability, and is aware of his right to rescind; and (2) restore to the other party everything of value which he has received from him under the contract; or offer to restore the same, upon condition that the other party shall do likewise, unless the latter is unable or positively refuses to do so. Subchapter III—Alteration and Cancellation § 1311. Alteration of verbal contract 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. § 1312. Alteration of written contract A contract in writing may be altered only by a contract in writing or an executed oral agreement. § 1313. Destruction or cancellation by consent of parties 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.

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