Opinion ID: 2067498
Heading Depth: 1
Heading Rank: 4

Heading: The Dismissal of the Clarks' Claim Against the Pierces.

Text: The Clarks cross-appeal from the court's dismissal of their breach-of-contract claim against the Pierces. They ask that the court order a rescission of the agreement because the breach of the purchase agreement from the Pierces was substantial enough to defeat the object of the contracting parties. See Beckman v. Carson, 372 N.W.2d 203, 207 (Iowa 1985). Rescission, an equitable remedy, is considered to be extraordinary relief. It is not available as a matter of right but only when it is necessary to obtain equity. Potter v. Oster, 426 N.W.2d 148, 151 (Iowa 1988). Three requirements must be met before rescission will be granted: (1) the injured party must not be in default, (2) the breach must be substantial and go to the heart of the contract, and (3) remedies at law must be inadequate. Id. The general rule is stated: Where complainant seeking a rescission of his contract in equity has an adequate and complete remedy at law by the recovery of the consideration he has paid on the return of the property he has transferred, a court of equity will not ordinarily take jurisdiction merely for the purpose of declaring a rescission. Also, the remedies of cancellation of an instrument, or of a rescission, are not ordinarily provided where adequate relief is available in the form of a money judgment. 12A C.J.S. Cancellation of Instruments § 11, at 657 (1980). The defendants filed their action and tried it at law. They do not contend that they lacked an adequate remedy at law. Further, their request for equitable relief in the way of rescission was not raised in the district court in their pleading or a motion under rule of civil procedure 179(b) and was therefore waived. We modify the judgment against McDaniel by increasing it to $5850. As so modified, we affirm on both appeals. We remand to the district court for entry of a corrected judgment. AFFIRMED ON BOTH APPEALS, AS MODIFIED, AND REMANDED.