Question

When parties to an oral contract have both fully performed their obligations under the contract, the parties are: Select one: a. allowed to rescind the contract. b. not allowed to rescind the contract. c. allowed to seek compensatory damages. d. not allowed to recover the value of the performance in quasi contract.

Answer 1

Answer: b. not allowed to rescind the contract

Explanation: parties to an oral contract (a type of business contract that is outlined and agreed to via spoken communication, but not written down) having both fully performed their obligations under the stipulations of the oral contract are not allowed to rescind the contract according to contract law. This therefore, does not allow the parties to be restored to their original status before the oral contract was made (status quo ante).