Victorian Consolidated Legislation

Retirement Villages Act 1986 - SECT 42

Consequences of rescission

42. Consequences of rescission



(1) A right of rescission conferred by this Act may be exercised if and only
if-

   (a)  the person entitled to rescind the contract serves notice in writing
        on all other parties to the contract that the contract is rescinded;

   (b)  the person entitled to rescind the contract serves notice mentioned in
        paragraph (a) not later than 6 months after becoming aware of the
        contravention which entitles the person to rescind the contract.

(2) If a person entitled to rescind a contract under this Act complies with
subsection (1), the rescission takes effect on the date of service of the
notice and the contract is to be regarded as being void from its beginning.

(3) If a contract is rescinded in accordance with this section-

   (a)  the rescission notice is to be regarded as applying to the management
        contract, the residence contract and all collateral contracts entered
        into by the resident; and

   (b)  the resident becomes entitled to the immediate payment of all moneys
        paid by the resident or on the resident's behalf in connexion with
        those contracts.

(4) On application by a resident or an owner, a court of competent
jurisdiction if satisfied that-

   (a)  there has been a contravention of this Act which gives rise to a right
        in the resident to rescind the contract; and

   (b)  the resident has complied with subsection (1)-

may-

   (c)  make an order declaring that a residence contract entered into by that
        resident has been rescinded in accordance with this section; and

   (d)  make such other vesting orders and consequential orders as the court
        considers just and equitable, including orders requiring repayment of
        in-going contributions or other moneys paid by or in behalf of the
        resident.