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 While legal systems differ on the precise reasons for which a contract may be rescinded, it may occur due to an act of God or by mutual consent, provided that no substantial progress has been made toward completion of the contract. In the context of finance and economics, some contracts may be rescinded up to a certain point after they come into effect.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 Likewise, the sale of land may be rescinded by either party up to the point the sale is recorded. Sometimes an option contract, especially a stock option, can be rescinded for a certain time after its exercise; in this situation, the person who exercised the option surrenders the underlying in exchange for the cash he/she paid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 ?
Drake thus raised the possibility of an equitable bar to the right of recission in insurance contracts, which could open the door for courts to consider all the circumstances in order to determine whether the remedy is just and does not produce unnecessary hardship.
5620, the Supplemental Appropriations, Transfers, and Recissions Bill, FY 1992.
2) President Bill Clinton vetoed a $16 billion recission package in June 1995; however, the HUD recission was not listed among his reasons for the veto.
Alternatively put, Terrence MacSwiney's hunger strike to death compromised British rule in Ireland more than any military action against British rule; the practical recission of the instruments of British common law(so beloved of Kauffman, and such an invitation to make things up as they go along, absent a written constitution) was completed by public rejection of the colonial court system and the creation of autochthonous courts; the use of force by Michael Collins was pointed at ensuring that "normalcy" could not return, as there was no chance of victory in pitched battle.
Plaintiff alleges fraud, recission and breach of contract.
A subsequent recission brought the amount down to $22.
A subsequent recission brought the estimated amount down to $22.