It Is Illegal for Two Parties to Mutually Agree to Rescind

question 8

True/False

It is illegal for two parties to mutually agree to rescind a valid contract.

---

Definitions:

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid, and must be paid out before dividends to common stockholders.

Common Stock

Equity security representing ownership in a corporation, with rights to vote on corporate matters and receive dividends.

Dividend

A portion of a company's earnings distributed to its shareholders, typically on a regular basis.

Cumulative Preferred Stock

A type of preferred stock that accumulates unpaid dividends, which must be paid out before any dividends can be issued on common stock.