Rescission is the legal act of canceling a contract, effectively nullifying it as if it never existed. This remedy is available when a contract is found to be voidable due to factors like misrepresentation, mistake, undue influence, or duress.
Legal Context
Rescission restores the parties to their positions before the contract was made, which may involve returning any exchanged goods, services, or payments. It is often sought when one party discovers that the agreement was based on false information or was unfairly obtained. Rescission can be a powerful tool in contract law, used to unwind transactions that are found to be legally flawed.
Example
Imagine a scenario where a person buys a piece of property based on the seller’s false claims about the zoning laws. Upon discovering the deception, the buyer can seek rescission of the contract, meaning the sale is canceled, and the buyer is entitled to a refund of the purchase price, with the property returned to the seller.
