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9-09 Extinction, Rescission, Alteration, and Cancellation

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CHAPTER 9-09EXTINCTION, RESCISSION, ALTERATION, AND CANCELLATION9-09-01. Extinction of contracts. A contract may be extinguished in like manner withany other obligation and also by rescission, alteration, or cancellation to the extent and in the<br>manner provided by this title.9-09-02. Rescission - When permitted. A party to a contract may rescind the same inthe following cases only:1.If the consent of the party rescinding or of any party jointly contracting with the party<br>rescinding was given by mistake or obtained through duress, menace, fraud, or<br>undue influence exercised by or with the connivance of the party as to whom the<br>party rescinding rescinds or of any other party to the contract jointly interested with<br>such party;2.If through the fault of the party as to whom the party rescinding rescinds the<br>consideration for the rescinding party's obligation fails in whole or in part;3.If such consideration becomes entirely void from any cause;4.If such consideration before it is rendered to the party rescinding fails in a material<br>respect from any cause; or5.By consent of all of the other parties.9-09-03.Rescission permitted notwithstanding provisions against.A stipulationthat errors of description shall not avoid a contract or shall be the subject of compensation, or<br>both, does not take away the right of rescission for fraud, nor for mistake when such mistake is in<br>a matter essential to the inducement of the contract and is not capable of exact and entire<br>compensation.9-09-04. Rules governing rescission. Rescission, when not effected by consent orpursuant to sections 9-08-08 and 9-08-09, can be accomplished only by the use, on the part of<br>the party rescinding, of reasonable diligence to comply with the following rules:1.The party rescinding shall rescind promptly upon discovering the facts which entitle<br>that party to rescind, if that party is free from duress, menace, undue influence, or<br>disability and is aware of that party's right to rescind; and2.The party rescinding shall restore to the other party everything of value which the<br>party rescinding has received from the other party under the contract or must offer to<br>restore the same upon condition that such party shall do likewise, unless the latter is<br>unable or positively refuses to do so.9-09-05. Alteration of oral contract. A contract not in writing may be altered in anyrespect by consent of the parties in writing without a new consideration, or by oral consent of the<br>parties with a new consideration, and is extinguished thereby to the extent of the alteration.9-09-06.Alteration of written contract.A contract in writing may be altered by acontract in writing or by an executed oral agreement and not otherwise. An oral agreement is<br>executed within the meaning of this section whenever the party performing has incurred a<br>detriment which that party was not obligated by the original contract to incur.9-09-07. Destruction or cancellation by consent. The destruction or cancellation of awritten contract or of the signature of the parties liable thereon with intent to extinguish the<br>obligation thereof extinguishes it as to all of the parties consenting to the act.Page No. 19-09-08. Cancellation or destruction of contract - Effect. The intentional destruction,cancellation, or material alteration of a written contract by a party entitled to any benefit under it,<br>or with that party's consent, extinguishes all the executory obligations of the contract in that<br>party's favor against parties who do not consent to the act. When a contract is executed in<br>duplicate, an alteration or destruction of one copy while the other exists is not within the<br>provisions of this section.Page No. 2Document Outlinechapter 9-09 extinction, rescission, alteration, and cancellation