Indian Contract Act Section 64 — Consequences of rescission of voidable contract
CHAPTER IV OF THE PERFORMANCE OF CONTRACTS — Contracts which need not be performed
Commercial / Corporate
Summary
When a person who has the option to make a contract voidable decides to rescind it, the other party to that contract is no longer required to perform any promise they made under it. In other words, the other side is freed from their obligations under the contract once it is rescinded.
The person who rescinds the contract must, if they have received any benefit from the other party under the contract, give that benefit back to the person from whom they received it, to the extent possible. This means the party choosing to cancel the contract has a duty to restore whatever they gained, as far as they can.
Official Text
When a person at whose option a contract is voidable rescinds it, the other party thereto need not perform any promise therein contained in which he is promisor. The party rescinding a voidable contract shall, if he have received any benefit thereunder from another party to such contract, restore such benefit, so far as may be, to the person from whom it was received.4