Is the institution of a personal injury action sufficient notice of rescission?

California, United States of America


The following excerpt is from Realty Co. of America v. Burton, 160 Cal.App.2d 178, 325 P.2d 171 (Cal. App. 1958):

In actions in equity there are certain exceptions to the general rule enunciated by Section 1691 of the Civil Code (Kelley v. Owens, 120 Cal. 502, 510, 47 P. 369, 52 P. 797). In the case at bar, since it appears respondents received nothing which could be restored, the institution of the suit was sufficient notice of a rescission in a case such as this. And, where, as here, we are concerned with an equity case, [160 Cal.App.2d 196] and no legal prejudice to appellants could have resulted, the rule concerning the filing of the action as being sufficient notice of rescission is especially true.

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