Rescission refers to the legal act of revoking or canceling a contract or agreement. It restores the parties involved to their original positions before the contract was made, often due to factors like misrepresentation, fraud, or mutual mistake. Rescission can be sought through the courts or may be stipulated in the contract itself. It is an important remedy in contract law aimed at upholding fairness in contractual relationships.
Rescision meaning with examples
- After discovering that the seller had misrepresented the condition of the car, Linda sought rescission of the purchase agreement, hoping to get her money back and return the vehicle.
- The court granted rescission of the lease agreement after it was revealed that the landlord engaged in fraudulent practices to secure tenants.
- In a recent ruling, the judge ordered rescission of the contract due to the plaintiff's inability to fulfill the essential terms outlined at the outset.
- Sarah approached her lawyer to discuss the possibility of rescission regarding her investment contract, which she felt was based on false claims made by the advisor.
- When the parties mutually agreed that the terms of the contract were no longer feasible, they opted for rescission, freeing both from their obligation.