FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd. · ¶22
Section 47(b)’s function underscores the provision’s focus on a court’s remedial power. The common law makes it difficult to obtain rescission if a contract has been performed. If a contract formed in violation of a statute “has been fully executed on the part of the plaintiff,” then neither “a court of law nor a court of equity will assist the plaintiff to recover back the property conveyed or money paid under the contract.” St. Louis, V. & T. H. R. Co. v. Terre Haute & Indi anapolis R. Co., 145 U. S. 393, 407–408 (1892); Black §313; see 15 W. Jaeger, Williston on Contracts §1787 (3d ed. 1972). In that circumstance, the common law denies rescission and leaves the parties “where their own acts have placed them.” Black §313; see also id., §318 (discussing rescission in the context of contracts formed in violation of statutes); Restatement (First) of Contracts §598 (1932) (similar).…Read in context ›
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