Right of rescission


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Right of rescission

The right to void a contract without any penalty within three days as provided in the Consumer Credit Protection Act of 1968.

Rescission

The act of abolishing a contract and restoring, as far as possible, the status quo ante. While legal systems differ on the precise reasons for which a contract may be rescinded, it may occur due to an act of God or by mutual consent, provided that no substantial progress has been made toward completion of the contract. In the context of finance and economics, some contracts may be rescinded up to a certain point after they come into effect. For example, some mortgage refinance contracts allow the homeowner a period of three business days after signing the contract in which he/she may unilaterally rescind it. Likewise, the sale of land may be rescinded by either party up to the point the sale is recorded. Sometimes an option contract, especially a stock option, can be rescinded for a certain time after its exercise; in this situation, the person who exercised the option surrenders the underlying in exchange for the cash he/she paid for it.
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Counsel representing defrauded investors should be aware that the Florida Securities Act provides a three-day right of rescission to investors that purchase securities in a private placement to five or more persons in Florida.
Using the right of rescission against abusive practices may have been the equivalent of using a hammer to drive a screw, but it was all they had.
Everybody's looking for a right of rescission," she said.
The ICBA highlighted many areas where regulatory burden creates problems, such as the right of rescission, a three-day period when borrowers can cancel the loan before receiving the funds.
The Closing, effective March 5, 2002, is also subject to various Agreements, including, but not limited to, a Merger Agreement, Management and Operations Agreement, Right of Rescission Agreement, and Pledge Agreement between Mr.
As lenders attempt to replace problematic developers at stalled or failed projects -- a move that would typically require an amendment to the offering plan -- they are going out of their way to avoid triggering the buyers' right of rescission, said Matt Blesso, the president of the development firm Blesso Properties.
All current subscribers to this offering who decide to withdraw their participation based on the current amendment will be provided with a seven-day written right of rescission.
The jury did not hear about Cook's financial and legal problems, which, according to a Bloomberg news service report, include a suit by the attorney general of Texas against his company, Wade Cook Financial, alleging that Cook's company falsified its records, failed to disclose to his seminar participants that the company lost money trading stocks for its own account, and didn't offer students a three-day right of rescission.