§ 28:2-720. Effect of "cancellation" or "rescission" on claims for antecedent breach.

Current through October 23, 2012

Unless the contrary intention clearly appears, expressions of "cancellation" or "rescission" of the contract or the like shall not be construed as a renunciation or discharge of any claim in damages for an antecedent breach.

                
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(Dec. 30, 1963, 77 Stat. 669, Pub. L. 88-243, § 1.)

HISTORICAL AND STATUTORY NOTES

UNIFORM COMMERCIAL CODE COMMENT

Prior Uniform Statutory Provision

None.

Purpose

This section is designed to safeguard a person holding a right of action from any unintentional loss of rights by the ill-advised use of such terms as "cancellation", "rescission", or the like. Once a party's rights have accrued they are not to be lightly impaired by concessions made in business decency and without intention to forego them. Therefore, unless the cancellation of a contract expressly declares that it is "without reservation of rights", or the like, it cannot be considered to be a renunciation under this section.

Cross Reference

Section 1-107.

Definitional Cross References

"Cancellation". Section 2-106.

"Contract". Section 1-201.

Prior Codifications

1981 Ed., § 28:2-720.

1973 Ed., § 28:2-720.