Section 538: Consequences of rescission or voidance of contract

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1) If, after a party to a contract has already received some cash or kind or any other benefit from the other party or after the fulfillment of the obligations under the contract partially, the contract is rescission or voidance by mutual consent of the parties and the performance of the contract is not required under this Part or other law, the contract is voided or declared to be void according to law or the contract becomes invalid or is rescinded under this Part, such cash, kind or service so received shall be returned upon having settled the accounts of the cash or kind given until the date of the contract being in force.

2) If any service or advantage other than cash or kind has been given pursuant to sub-section (1), the party receiving such service or advantage shall pay a reasonable amount to the other party in consideration for such service or benefit.

3) If it becomes necessary to institute legal action by reason of failure to return the cash or kind or to pay the amount as referred to in sub-section (1), a reasonable expense incurred for that purpose may also be recovered.

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Section 538: Consequences of rescission or voidance of contract

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