Terms Used In 18 Guam Code Ann. § 89204

  • Contract: A legal written agreement that becomes binding when signed.
  • Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
Rescission, when not effected by consent, can be accomplished only by the use, on the part of the party rescinding, of reasonable diligence to comply with the following rules:

1. He must rescind promptly, upon discovering the facts which entitle him to rescind, if he is free from duress, menace, undue influence, or disability, and is aware of his right to rescind; and,

2. He must restore to the other party everything of value which he has received from him under the contract; or must offer to restore the same, upon condition that such party shall do likewise, unless the latter is unable or positively refuses to do so.

SOURCE: CC § 1691.

COURT CASES: Where vehicle was driven 5 or 6 months, and 7,100 miles, after purchase, buyer made timely rescission where vehicle never worked properly and was in dealer’s shop for much of that time; and court found that buyer would not have

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18 Guam Code Ann. BUSINESS STRUCTURE & FUNCTION
CH. 89 EXTINCTION OF CONTRACTS

entered into the deal had he been aware of the problems with the car. Quitugua v. Atkins Kroll, 1 Guam R. 190 (D.C. Guam App.Div. 1970).
NOTE: No 1970 Civil Code Ԥ 1992-1996 existed.

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ARTICLE 3
ALTERATION & CANCELLATION

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