rescission

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Related to recission: Rescission of contract

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 While legal systems differ on the precise reasons for which a contract may be rescinded, it may occur due to an act of God or by mutual consent, provided that no substantial progress has been made toward completion of the contract. In the context of finance and economics, some contracts may be rescinded up to a certain point after they come into effect.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 Likewise, the sale of land may be rescinded by either party up to the point the sale is recorded. Sometimes an option contract, especially a stock option, can be rescinded for a certain time after its exercise; in this situation, the person who exercised the option surrenders the underlying in exchange for the cash he/she paid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.

rescission

The cancellation of a previous exercise of an incentive stock option, generally because of a substantial drop in the price of the stock acquired through the exercise. Rescission results in the employee surrendering stock in exchange for money that was paid for the stock.

rescission

See rescind.

References in periodicals archive ?
Jon Whitcomb of Diserio Martin added, "the failure to register is a material breach of Konover's obligations, justifying recission of any agreement between the parties, and restitution of the amounts loaned prior to conversion.
For over a year now, new management at both companies has sought an equitable recission of the original transaction," said current Chairman and CEO Leon Blaser of WasteMasters.
The terms of the recission are contained in the Form 8-KA Current Report of First Deltavision dated April 9, 2002, which was filed with the Securities and Exchange Commission on Nov.
The impact of this situation has caused us (the plaintiffs) to pursue recission of the Franchise Agreement," concluded Patel.
loss on recission 150,000 Long-Term Debt 0 0 Common stock to be issued 423,750 423,750 Total Liabilities 1,350,270 1,095,755
Counsel for plaintiff and the putative class intend to pursue swift and vigorous recovery of the monies lost as the result of defendants' actions and, in the alternative, the recission of the purchases of the Company's shares.
In the suit, filed in Chancery Court in Delaware, Bally's Grand minority shareholders who together hold close to 60 percent of Bally's Grand shares in public hands asked the court for a recission of the $60 million cash and stock sale of the Bally's Grand Paris Casino Resort to Bally Entertainment and its proposed merger partner Hilton Hotels.
Plaintiff seeks to recover damages and/or recission of the acquisition of Deutche Telekom stock acquired pursuant to the Registration Statement filed May 22, 2000 and Prospectus dated June 17, 2000, on behalf of class members and is represented by counsel including the law firm of Stull, Stull & Brody.
In a new report, Moody's Investors Service, New York, said that monoline financial guarantors and mortgage insurers plan to reduce their losses from defaulted mortgages through "loan put-backs to originators and through claims recissions and denials.
Successful business managers must certainly know the world of government financial management, including the Planning, Programming, Budgeting, and Execution (PPBE) system with its lexicon of terms, such as program budget guidance, supplemental, recissions, congressional interest items, and affordability.
The Forest Service had authorized the harvesting of these sales despite the fact that the Tribes' administrative appeals were still pending because the Forest Service believed it was required to do so by the "Salvage Rider" of the 1995 rescissions bill, Emergency Supplemental Appropriations for Additional Disaster Assistance, for Anti-Terrorism Initiatives, for Assistance in the Recovery from the Tragedy that Occurred at Oklahoma City, and Recissions Act of 1995, Pub.
Nevertheless, recissions in the federal budget have not spared libraries, and state and local funding has been cut in many instances as well.