The correct answers are: Both parties can be returned to their pre-contract position; No innocent third party has acquired rights which would be affected and; The right is being exercised within a reasonable time of the breach.

Rescission is an equitable remedy and therefore the court has a discretion whether to grant it or not.

The remedy is only appropriate where both parties can be restored to their pre-contract position and a reasonable time has elapsed since the breach.

It will not be allowed when an innocent third party has acquired rights in the subject matter of the contract or where the contract was affirmed by the claimant after the breach first occurred as it would operate unfairly.