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LSDefine
Simple English definitions for legal terms
recision
Read a random definition: Real Estate Settlement Procedures Act
A quick definition of recision:
Rescission is when one party cancels or ends a contract for a good reason, like if the other party broke the rules. This can be used as a way to fix the problem and make things fair again. It can also be an agreement between both parties to end the contract. When a contract is rescinded, both parties go back to how things were before they made the contract.
A more thorough explanation:
Recision is the act of canceling or voiding a contract by one party for a legally valid reason, such as a breach of contract by the other party or a court judgment. It is a remedy or defense available to a non-defaulting party, and it involves restoring the parties to their pre-contractual positions by returning any partial performance.
- If a homeowner hires a contractor to build a new deck, but the contractor fails to complete the work on time or does a poor job, the homeowner may seek recision of the contract and hire a new contractor to finish the job.
- If a car dealership sells a car to a customer but fails to disclose that the car has been in a major accident, the customer may seek recision of the contract and return the car for a refund.
These examples illustrate how recision can be used as a remedy for a party who has been harmed by a breach of contract or fraudulent behavior. By canceling the contract and returning any partial performance, the parties can be restored to their pre-contractual positions and avoid further harm or losses.