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The right of a party to avoid the contract is exercised by notice to the other party. 

 

COMMENT


1. The requirement of notice

 

This Article states the principle that the right of a party to avoid the contract is exercised by notice to the other party without the need for any intervention by a court.

 

2. Form and content of notice

 

No provision is made in this Article for any specific requirement as to the form or content of the notice of avoidance. It follows that, in accordance with the general rule laid down in Article 1.10(1), the notice may be given by any means appropriate to the circumstances. As to the content of the notice, it is not necessary that the term “avoidance” actually be used, or that the reasons for avoiding the contract be stated expressly. However, for the sake of clarity a party would be well advised to give some reasons for the avoidance in its notice, although in cases of fraud or gross disparity the avoiding party may assume that those reasons are already known to the other party.

 

Illustration

 

A, B’s employer, threatens B with dismissal if B does not sell A a Louis XVI chest of drawers. B ultimately agrees to the sale. Two days later A receives a letter from B announcing B’s resignation and stating that B has sold the chest of drawers to C. B’s letter is sufficient notice of avoidance of the contract of sale with A.

 

3. Notice must be received

 

The notice of avoidance becomes effective when it reaches the other party (see Article 1.10(2)).

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