'Rescission' Is

question 21

Multiple Choice

'Rescission' is:

• A)the cancellation of a contract and the restoration of the parties to their original positions.
• B)a court order requiring a party to perform the terms of the contract.
• C)an order severing certain unenforceable terms from a contract and requiring performance of the remaining terms.
• D)a declaration that a contract is valid and enforceable.

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Definitions:

Financing Statement

A document filed to give public notice to third parties of a secured party's interest in the collateral offered by a debtor.

Perfect

To complete or make flawless; in legal terms, it often refers to making a claim or security interest legally valid or enforceable.

Insuring

The act of providing or arranging insurance as protection against a possible eventuality.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the borrower fails to repay the loan.