When a contract is revoked:

The correct answer reflects an important aspect of contract law concerning revocation. When one party revokes a contract, it doesn't automatically absolve them of all obligations to the other party. Depending on the terms of the contract and the circumstances under which it is revoked, the revoking party may still have binding obligations. For example, if the revocation occurred after certain performances were promised, the revoking party could still be liable for damages or losses resulting from the revocation.

Additionally, certain legal principles, such as the timing of the revocation notice and the parties' reliance on the contract, can also influence whether obligations remain. If the contract was partially performed or if one party had already incurred costs based on the agreement, the revoking party could face consequences related to those actions. Understanding these nuances is key to navigating contractual responsibilities in the event of a revocation.

In contrast, the other options do not accurately reflect the complexities of contractual obligations after revocation. For instance, the idea that the revoking party has no further obligations overlooks potential liabilities that can arise from the termination of the contract. Similarly, stating that all parties must draft a new contract does not account for situations where the revocation leads to other legal or financial ramifications based on