28-2-1716. Power of court to require party rescinding to do equity. On adjudging the rescission of a contract, the court may require the party to whom such relief is granted to make any compensation or restoration to the other which justice may require.
Montana Code Annotated
Mont. Code Ann. § 28-2-1716 (2026)
Power Of Court To Require Party Rescinding To Do Equity
✓ current as of May 2026
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TITLE 28. CONTRACTS AND OTHER OBLIGATIONS
CHAPTER 2. CONTRACTS
Part 17. Extinction of Contracts -- Rescission
Power Of Court To Require Party Rescinding To Do Equity
History: En. Sec. 4442, Civ. C. 1895; re-en. Sec. 6114, Rev. C. 1907; re-en. Sec. 8732, R.C.M. 1921; Cal. Civ. C. Sec. 3408; Field Civ. C. Sec. 1905; re-en. Sec. 8732, R.C.M. 1935; R.C.M. 1947, 17-907.
Notes of Decisions
Cited in 8
cases, 1980–2018 · leading case: ALPS Prop. & Cas. Ins. Co. v. McLean & McLean, PLLP, 2018 MT 190, 425 P.3d 651.
ALPS Prop. & Cas. Ins. Co. v. McLean & McLean, PLLP, 2018 MT 190, 425 P.3d 651. “" Section 28-2-1716, MCA. 3 ¶ 25 Title 33 governs the formation and termination of insurance contracts specifically.”
McGregor v. Mommer, 714 P.2d 536 (Mont. 1986). “Section 28-2-1713(2), MCA, states that the rescinding party "must restore to the other party everything of value which he has received from him under the contract or must offer to restore the same, upon condition that such party shall do likewise, unless the latter is unable or…”
Brunner v. Lacasse, 763 P.2d 662 (Mont. 1988). “The Silfvast case deals with our present Section 28-2-1716, MCA. The statute authorizes the court to direct the rescinding party to “make any compensation or restoration to the other which justice may require.”
Scott v. Hjelm, 613 P.2d 1385 (Mont. 1980). “In essence, appellant is contending that a rescission of a contract must result in the parties being placed in status quo, and that the parties in the present case were not placed in status quo because Carl Scott was allowed to keep the first foal.”
Forsythe v. Elkins, 700 P.2d 596 (Mont. 1985). “On rescission, however, Forsythe-Tinney lost the right to occupy the property, and Elkins and Hendons would be entitled to an offset for the reasonable rental value of the property occupied by Forsythe-Tinney from and after the date of service of the notice to quit served upon…”
Chabot v. Washington Mut. Bank (In Re Chabot), 369 B.R. 1 (Bankr. D. Mont. 2007). “” MCA § 28-2-1716. Even if Chabot were not barred by the two-year Montana statute of limitations for fraud, her argument that she is entitled to rescission based upon fraud without paying WaMu on its loan for 5 years, except for a single payment, is *21 contrary to Montana’s…”
Jorgensen v. Trademark Woodworks, LLC, 2018 MT 291, 431 P.3d 29. “While it may be impossible to fully restore the parties to their pre-contract position given the work that was completed, we agree with the District Court that, following rescission, the Jorgensens and Trademark worked to restore one another to the status quo. ¶30 After the…”
Gorski v. Pegg, No. 93-528 (Mont. Aug. 25, 1995). “Section 28-2-1716,MCA, which is relied on by the majority, is not applicable to the issue raised by the plaintiffs.”
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