Rescission for breach of contract 18 Rescission for breach of contract: return of benefits received (1) On a contract being lawfully rescinded for breach of contract, this section and sections 30 19 to 21 apply if a party to the contract received any benefit from the performance by another party of an obligation under the contract. (2) But this section and sections 19 to 21 do not apply in respect of any benefit which fully reciprocated the performance of such an obligation by the party which received the benefit. 35 (3) The party which received the benefit is in those sections referred to as “the recipient”. (4) The benefit must be returned to the other party provided that the other party concurrently returns any benefit it received from the performance by the recipient of an obligation under the contract. 8 Contract (Formation and Remedies) (Scotland) Bill Part 2—Remedies for Breach of Contract (5) In so far as the performance was a payment of money, the amount received must be repaid. (6) In so far as the benefit was not a payment of money but is transferable by the recipient, it must be transferred to the other party unless it would be unreasonable or impracticable 5 to do so, in which case its return is to be by the payment to the other party of its value. (7) In so far as the benefit was not a payment of money and is not transferable by the recipient, its return is to be by the payment to the other party of— (a) its value, or (b) if it has been disposed of for an amount greater than its value, that greater amount. 10 (8) The requirement to return a benefit includes a requirement to return the fruits of the 1 benefit (whether natural or civil). 19 Value of benefit (1) This section applies where the recipient is required, by section 18(6) or (7), to pay the value of a benefit. 15 (2) The payment is the value of the benefit as at the time of the performance by the other party. (3) Where there was an agreed price, the value of the benefit is that proportion of the price which the value of the actual performance bears to the value of the promised performance. 20 (4) Where there was no agreed price, the value of the benefit is the sum of money which a willing and capable provider and a willing and capable recipient would reasonably be taken to have agreed for the actual performance. (5) But subsections (2) to (4) are subject to subsection (6). (6) The recipient’s liability to pay the value of a benefit is reduced to the extent that, as a 25 result of the non-performance of an obligation owed by the other party to the recipient (being an obligation under the contract) the recipient is compelled, without compensation, either to dispose of the benefit or to sustain a disadvantage in order to preserve it. 20 Compensation for reduction in value of a returned benefit (1) This section applies where the recipient is required, by section 18(6), to transfer a 30 benefit. (2) The recipient must pay compensation for any reduction in the value of the benefit as a result of a change in the condition of the benefit between the time of receipt...