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.
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Frequently asked questions about rescission
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.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.