What legal principle applies when both parties fail to fulfill their part of the contract obligations?

The principle of mutual rescission applies in situations where both parties fail to fulfill their contractual obligations. This principle allows for both parties to effectively cancel or rescind the contract, as they have not performed their respective duties as stipulated in the agreement. In essence, mutual rescission recognizes that when both sides are unable to uphold their commitments, the contract cannot be enforced, allowing them to terminate any further obligations to each other.

This aligns with the overall purpose of contractual agreements: to ensure that both parties benefit from the terms set forth. When both fail to fulfill their obligations, this mutual inability can justify the complete discharge of the contract. It also maintains fairness, recognizing that both parties are in the same position regarding non-performance.

In contrast, the other principles listed are not applicable in this context. The doctrine of estoppel pertains to preventing a party from asserting something contrary to what is established, particularly if it would be unjust to allow them to change their position. The parol evidence rule deals with the admissibility of external evidence to interpret the terms of a written contract, and does not address issues of obligation fulfillment. Lastly, undue influence relates to persuasive pressure by one party over another resulting in an unfair advantage, which is fundamentally different from the situation described where both