Rescind

Rescind means to revoke, cancel, or repeal a contract, agreement, or decision, returning the parties to their original positions as if the contract never existed. In law, rescission is a remedy that voids the agreement and typically nullifies contractual obligations.

In contract law, rescission may occur by mutual agreement or by one party under certain grounds such as misrepresentation, fraud, duress, mistake, illegality, or breach of contract. It can also arise from statutory rights, cooling-off periods, or consumer protection laws. Rescission is distinct from termination; rescission cancels the contract from the outset (retroactive), whereas termination ends future performance.

The effects usually include restitution or the return of any consideration exchanged, restoration of parties to their pre-contract positions, and freeing them from further obligations. Depending on jurisdiction, courts may require the return of goods, money, or other property, and may award damages for losses caused by the rescission if restitution is incomplete.

In practice, rescission is common in real estate closings, consumer sales, and business transactions where misrepresentation or coercion is alleged. The precise rules governing rescission—including permissible grounds, notice requirements, and remedies—vary by jurisdiction and contract terms, so parties often seek legal advice to determine their rights.

Etymology: from Latin rescindere, to cut back, pull up. Distinctions: while rescission restores the status quo, revoke or cancel generally terminates a decision or contract moving forward.