Define: Rescission

Rescission
Rescission
Quick Summary of Rescission

Rescission is a legal remedy that allows a party to cancel or terminate a contract, rendering it void and restoring the parties to their pre-contractual positions. This remedy is typically available when one party has entered into the contract based on misrepresentation, mistake, duress, undue influence, or a breach of contract by the other party. Rescission effectively unwinds the contract and releases the parties from their obligations under it. It aims to restore fairness and equity by undoing the effects of the wrongful conduct or circumstances that led to the formation of the contract. Rescission may be pursued through legal action or by mutual agreement between the parties involved.

What is the dictionary definition of Rescission?
Dictionary Definition of Rescission

Rescission is the ability to cancel a contract after it has been executed. Most contracts do not have this option.

Full Definition Of Rescission

To rescind a contract is to treat it as terminated, perhaps because one party is in breach (see: repudiation of contract), or because the contract is voidable (e.g., for misrepresentation).

Home equity loans and lines can usually be rescinded by any owner of the secured property within the rescission period set out by your state law if your state has one. Some people mistakenly believe that you can rescind vehicle sales contracts, although this is almost never true.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.

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