If either party withdraws from the contract, what can the other party do?

• A. Sue for specific performance only
• B. Sue to enforce the terms of the contract performed
• C. Seek rescission
• D. Ignore the contract

Answer: (B)

When one party withdraws from a contract, the contract is breached. The other party can seek a remedy that ensures the bargain is respected, typically by suing to enforce the terms that have been performed and to recover for the breach. This means enforcing what has already occurred under the agreement and pursuing damages or the remaining obligations if feasible. Specific performance is a possible remedy, but it’s not automatic and only available in limited situations where monetary damages aren’t adequate and the subject matter is unique. Rescission would undo the contract and restore the parties to their pre-contract positions, which isn’t the default response to a withdrawal. Ignoring the contract isn’t a remedy, since the contract remains binding and breach can be pursued.