FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd. · ¶24
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 & Indian apolis 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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