Contract Glossary
Rescission
Definition
The cancellation of a contract that restores both parties to their positions before the contract existed, as if the deal never happened. It can happen by mutual agreement, by one party exercising a contractual right, or by court order.
In Practice
If you discover the seller lied about a property's condition after closing, you can seek rescission, unwinding the entire sale. You return the property, they return your money. Rescission is different from termination: termination ends the contract going forward, while rescission erases it as if it never existed.
Common in these contract types
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