Solicitors Qualifying Examination (SQE) Practice Exa\

When can a party rescind a contract if landlord's consent has not been obtained?

1. On the completion date only

2. Three working days before the completion date

3. Only if both parties agree to rescind

4. The day after the completion date

The correct answer is: Three working days before the completion date

A party can rescind a contract if the landlord's consent has not been obtained three working days before the completion date because this timing allows for the necessary internal processes to occur. Such scenarios often arise in contracts where landlord consent is required for certain transactions, such as assignments or subleases. Rescinding the contract before the completion date is important as it provides a mechanism to address the potential for issues arising from a lack of consent and avoids the situation where one party might inadvertently breach the terms of their contract. If a party waits until after the completion date or chooses to act only on the completion date itself, it may lose the right to rescind under this specific condition since the transaction would be considered completed without the necessary approvals in place. This highlights the significance of obtaining all requisite consents within a stipulated timeframe to ensure compliance and protect the rights of all parties involved in the contract.