Question

A contract may be ........................................ if the court finds there has been misinterpretation of the facts.

• A. restrained
• B. rescinded
• C. compelled
• D. conferred

Hint:

Associate \textbf{misrepresentation/mistake} $\Rightarrow$ \textbf{rescission}. Reserve {specific performance/compel} for enforcing a valid contract and {injunction/restraint} for stopping an act, not undoing an agreement.

Answer 1

The Correct Option is B

Step 1 (Recall the legal remedy): In contract law, when consent is vitiated by mistake, misrepresentation, or fraud, the usual equitable remedy is {rescission}—the contract is set aside and the parties are restored, as far as possible, to their pre-contract positions. Thus, if a court finds that there has been a {misinterpretation of facts} leading to an agreement, the proper judicial action is to {rescind} the contract.
Step 2 (Fit the verb to the sentence): “A contract may be {rescinded} if the court finds …” is the standard collocation used in judgments and textbooks.
Step 3 (Eliminate distractors carefully): \begin{itemize} \item restrained — courts restrain {actions} (by injunction), not the existence of a concluded contract due to misinterpretation.
\item compelled — the court may compel {performance} (specific performance) when a valid contract exists, not when facts were misinterpreted.
\item conferred — benefits or rights are {conferred}; a contract itself is not “conferred,” and this verb does not address invalidity. \end{itemize} Conclusion: Only rescinded correctly captures the legal remedy that unwinds an agreement procured on a mistaken understanding of facts.