Unless the contrary intention clearly appears, expressions of “cancellation” or “rescission” of the contract or the like shall not be construed as a renunciation or discharge of any claim in damages for an antecedent breach.
Source: L. 65: p. 1342, § 1. C.R.S. 1963: § 155-2-720.
OFFICIAL COMMENT
Prior Uniform Statutory Provision: None.
Purpose:
This section is designed to safeguard a person holding a right of action from any unintentional loss of rights by the ill-advised use of such terms as “cancellation”, “rescission”, or the like. Once a party’s rights have accrued they are not to be lightly impaired by concessions made in business decency and without intention to forego them. Therefore, unless the cancellation of a contract expressly declares that it is “without reservation of rights”, or the like, it cannot be considered to be a renunciation under this section.
Cross Reference:
Section 4-1-107.
Definitional Cross References:
“Cancellation”. Section 4-2-106.
“Contract”. Section 4-1-201.