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If a right holder does not actively exercise its right to rescind a contract within a certain reasonable period of time after the cause for rescission arises and builds significant justification by means of fulfilling its further obligations to have the other party believe that the right holder will no longer exercise its right, and then, chooses to assert its right by issuing the notice of rescission when the other party has already fulfilled a significant part of its contractual obligations, such exercise shall be determined to be made beyond a reasonable period and thus invalid, and the notice of rescission shall also have no effect of canceling the contract.

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Nantong Huajin Real Estate Co., Ltd. v. Shanxi Junwei Technology Co., Ltd.

  • 章节

  • 发表日期：

    2025年

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  • Xiaohai Guan,
  • Xiaodan Qi

摘要

If a right holder does not actively exercise its right to rescind a contract within a certain reasonable period of time after the cause for rescission arises and builds significant justification by means of fulfilling its further obligations to have the other party believe that the right holder will no longer exercise its right, and then, chooses to assert its right by issuing the notice of rescission when the other party has already fulfilled a significant part of its contractual obligations, such exercise shall be determined to be made beyond a reasonable period and thus invalid, and the notice of rescission shall also have no effect of canceling the contract.