Rescission

In one sentence

Unwinding a contract entirely, returning both parties to their positions before the deal.

Plain English

Rescission means canceling a contract and pretending it never happened. Both parties give back what they received, restoring the status quo. You might seek rescission if the contract was induced by fraud, misrepresentation, or a material mistake—situations where the deal was fundamentally flawed from the start. It's a drastic remedy because it erases the entire agreement, not just fixes one part.

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Example

You buy a used car after the dealer lies about its accident history. You discover the truth and ask the court to rescind the sale. The court orders the dealer to take the car back and refund your money, and you return the vehicle to the dealer.

Used in a sentence

“The buyer sought rescission of the purchase agreement because the seller had fraudulently concealed a major defect in the property.”

Related terms

Fraud

Intentional deception or misrepresentation made to trick someone into entering a contract or deal.

Misrepresentation

A false statement of fact made to induce someone into a contract.

Breach

A failure to do what a contract requires, such as not paying or not delivering.

Remedy

A legal action or payment a court awards to fix a harm or enforce a right after a breach.

Restitution

Returning money or property to restore someone to their original financial position.

Reformation

A court rewrites contract terms to match what both parties actually intended.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.