Simple English definitions for legal terms
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Rescission is when one party cancels a contract for a good reason, like if the other party broke the rules. This can happen if both parties agree to cancel the contract or if a court orders it. When a contract is rescinded, both parties go back to how things were before they made the contract. This is called restitution. Sometimes, rescission is called avoidance.
Definition: Recission is the act of canceling or voiding a contract by one party due to a legally sufficient reason, such as the other party's material breach or a court judgment. It is a remedy or defense available to a nondefaulting party, and it involves restoring the parties to their precontractual positions by restitution of any partial performance.
Examples:
These examples illustrate how recission can be used as a remedy for a nondefaulting party when the other party breaches the contract or engages in fraudulent behavior. By seeking recission, the nondefaulting party can cancel the contract and recover any payments made, thus restoring them to their precontractual position.