(1) If any party to a contract
fails to fulfill the obligation under the contract or gives a notice to
the other party that he or she will not perform the act to be
performed by him or her under the contract or his or her action and
conduct demonstrate that he or she is incapable of performing the
act under the contract, the party shall be deemed to have breached
the contract.
(2) If one party commits a breach of the contract pursuant
to sub-section (1) or action or conduct of that party demonstrates
non-performance of the contract in a material respect or
demonstrates a material breach of the contract by the conduct or
action of a party, the other party may rescind the contract by giving
a notice to such a party.
(3) In the case of the rescission of the contract pursuant to
sub-section (2), the party rescinding the contract shall not be bound
to perform the contract.