recission

Rescission, sometimes spelled recission, is the legal remedy of canceling a contract and returning the parties to their pre‑contract positions. It may be granted by agreement of the parties or by a court when grounds exist to treat the contract as if it never existed. Rescission is distinct from mere termination or cancellation of performance; it aims to unwind the contract entirely.

Common grounds include mutual mistake, misrepresentation or concealment, fraud, duress or undue influence, illegality, and lack of capacity that prevented genuine consent. Some jurisdictions recognize unilateral rescission for a material misrepresentation or for failures to disclose information in certain fiduciary or consumer contexts.

Effects and procedures: rescission typically requires restitution—the return of any goods or money exchanged and restoration of the parties to their original status. If property has been consumed or its value cannot be fully restored, courts may grant rescission with monetary restitution or adjust the remedy accordingly. Rescission can be ordered by a court after litigation or available by agreement of the parties, sometimes with conditions that acts be undone or transferred back.

Types and limitations: rescission by agreement is mutual; rescission by law occurs where the contract is voidable or has been procured by improper conduct. Practical obstacles include delay, ratification, or performance that bars rescission. Statutes of limitations and other defenses may apply, and some contracts limit or regulate the right to rescind. In consumer or real estate contexts, statutory rights may provide separate, time-bound rescission options.

See also: contract law, cancellation, termination, restitution, fraud.