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If a party to a contract seeks rescission in an action to recover money, you may order the contract rescinded in any of the following circumstances [CC §1689(b)]:
- If the consent of the rescinding party, or of any party jointly contracting with him or her, was given by mistake or obtained through duress, menace, fraud, or undue influence;
- If the consideration for the rescinding party’s obligation fails, in whole or in part, through the fault of the other party;
- If the consideration for the rescinding party’s obligation becomes entirely void from any cause;
- If the consideration for the rescinding party’s obligation fails in a material respect from any cause;
- If the contract is unlawful for causes that do not appear in its terms or conditions, and the parties are not equally at fault;
- If the public interest will be prejudiced by permitting the contract to stand; or
- Under circumstances specified in certain statutes.
The party seeking rescission must give prompt notice to the other party and restore any consideration received. [See CC §1691.] Relief based on rescission may include restitution and consequential damages. [See CC §1692.]
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