Section 94 The Indian Contract Act, 1872
Section 94 of the Indian Contract Act, 1872 is part of Chapter VI: Of the consequences of rescission of voidable contract, specifically dealing with the effects when a party rescinds a contract.
However, as per the Indian Contract Act, 1872, Section 94 states:
Section 94 – Communication of rescission
When a person at whose option a contract is voidable rescinds it, the rescission may be communicated or revoked in the same manner and subject to the same rules, as apply to the communication or revocation of a proposal.
Explanation:
This section links the communication of rescission (cancellation of a voidable contract) with the rules for communication of proposals under Sections 3 and 4 of the Act.
This means that:
Rescission must be communicated clearly to the other party.
It can be revoked before it is communicated in the same way a proposal can be revoked.
🔍 Example:
If A is induced to enter a contract with B through fraud, and later A decides to rescind (cancel) the contract, A must communicate this to B clearly. If A sends a letter to rescind the contract, but changes his mind before the letter reaches B, he can revoke the rescission before it is communicated (i.e., before B receives the letter).
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