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Rescission
Rescission is a legal remedy that cancels a contract and returns both parties to the positions they were in before the agreement was made.
What it actually is
Rescission is an equitable remedy that undoes a contract from its inception, as if it never existed, typically due to fraud, mistake, duress, or a material breach. It appears in a case when a party asks the court to nullify the contract rather than enforce it or seek damages, and it often requires the party seeking rescission to return any benefits received under the contract.
Why it matters in your case
If you are in a case involving rescission, the court may order that the contract is voided, which can relieve you of future obligations but may also require you to give back anything you received. It matters because it is a complete, not partial, remedy that can be more powerful than damages if the contract is unfair or was entered into improperly.
The common misunderstanding
People often confuse rescission with termination or cancellation of a contract; however, rescission retroactively erases the contract, while termination only ends future performance. Another common mistake is thinking rescission is automatic—it must be requested and approved by the court or agreed to by both parties.
Get the actual rule
Definitions are orientation; rules are authority
This page explains the concept. When it matters to your case, read the rule that governs it in your court — we hold Texas, federal and Washington court rules word for word, and every state's official resources are on the state pages. If someone cites a case at you, check that it exists first.
Related
Terms that travel with this one
General explanation, not legal advice, and not specific to any state — procedures and deadlines vary by jurisdiction and court. If you can get a lawyer or free legal aid, do: every real option.