Law for Business Students Essay Example | Topics and Well Written Essays - 1500 words

Law for Business Students - Essay Example It makes the contract completely cancelled and the precondition of the contract has to be considered for the legal status of English law. In other words, it is also described as the right of an individual who is the signatory to a contract to return to the similar state as earlier before entering into the agreement, if the courts doubt legal status. The repudiation may be in the form of mutual consent or individual action. It can also be practised by an issue of the decree by the court. Even though the invalidation of original contract subcontract situation, it may also be exercised under the circumstances of fraud, duress, material breach or default and misrepresentation. An oral or written contract can be rescinded on the ground of fraud. The right to rescind for fraud is allowed because of the logic that the defrauded party has failed to perform. However, all situations will not be declared as correct grounds for rescission based on fraud. False statements of value, or the failure to perform a promise to do something in the future without fraudulent intent, should not be considered as a basis for rescission for fraud or misrepresentation. The strong proof for fraudulent misrepresentation is required to be produced for justifying the repudiation of the contract. Once sufficient grounds were found confirming the involvement of the fraud, the victimized party can affirm the contract and can also sue for damages. Similarly, if any party violates the norms or provisions of the contract by involving in duress, the other party can repudiate the contract. It is also found that the same rules apply for repudiation of contract as in the case of fraud. However, the sufficient ground of duress has to be halved in the English court of law. This is to protect the interests of the innocent people.