Question 1

What's the difference between rescission and termination?

Accepted Answer

Termination ends the contract going forward — but rights and obligations that accrued before termination still stand. Rescission wipes the slate clean — it treats the contract as though it never existed. Rescission requires both sides to return what they received.

Question 2

When can I rescind a contract?

Accepted Answer

Common grounds include fraud, misrepresentation, duress, undue influence, mistake, and lack of capacity. Some contracts include a rescission right — like the 3-day cooling-off period for door-to-door sales under the FTC Rule. Mutual rescission (both parties agree to cancel) is always available.

Question 3

Do I have to return everything if a contract is rescinded?

Accepted Answer

Yes. Rescission aims for restitution — putting both parties back where they started. If you bought goods, you return them. If the seller received money, they give it back. If services were partially performed, the court may order payment for the reasonable value of work completed.

Question 4

How long do I have to seek rescission?

Accepted Answer

You need to act promptly after discovering the grounds for rescission. Waiting too long can bar your claim — courts may find you ratified (accepted) the contract by continuing to perform under it. There's no universal deadline, but 'promptly' usually means weeks or months, not years.

Question 5

Can I rescind a contract I regret signing?

Accepted Answer

Not just because you changed your mind. Rescission requires legal grounds — fraud, mistake, duress, or a contractual right to cancel. Buyer's remorse isn't enough. The exception: certain consumer transactions have cooling-off periods (3 days for door-to-door sales, 14 days for many online purchases in the EU).

Rescission

Definition

In Practice

Common in these contract types

Related terms

Frequently asked questions about rescission

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