Howard hires Lyons to do some repair work on his house. Howard agrees to pay Lyons $100,000 and Lyons agrees to complete the work in two weeks. The day before the work is supposed to begin, Howard and Lyons agree to terminate their contract. This is a valid mutual rescission:

Howard hires Lyons to do some repair work on his house. Howard agrees to pay Lyons $100,000 and Lyons agrees to complete the work in two weeks. The day after Lyons finishes the job, he and Howard agree to terminate their contract so that Howard does not have to pay for the work Lyons did. Later, Lyons changes his mind and asks Howard to pay him. When Howard refuses, Lyons sues Howard for breach of contract. Howard will win:

Howard hires Lyons to do some repair work on his house. Howard agrees to pay Lyons $100,000 and Lyons agrees to redo the electrical wiring, the plumbing and the shingling on the roof of the house. Lyons has finished the wiring and plumbing work when Howard tells him that he will pay the full $100,000 and Lyons does not have to do the shingling work. A few days later, Howard changes his mind and asks Lyons to do the shingling work as well. Lyons refuses and demands to be paid the full $100,000. When Howard refuses, Lyons sues Howard for breach of contract. Howard will win: