Rescind

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Rescind

To cancel a contract because of misrepresentation, fraud, or illegal procedure.

Rescind

To cancel a contract and declare it invalid from its beginning. When a contract is rescinded, both parties are restored to the status quo before the contract was entered (as much as possible). Rescission may occur by mutual agreement, or when one of the parties misrepresented himself/herself before the contract was signed.

rescind

To withdraw or undo.The act itself is called rescission. If a party has a right of rescission, the party may rescind a transaction.Important rescission rights include the following:

• Under the Truth-in-Lending Act, consumers may rescind a loan transaction if the lender failed to provide all required disclosures.

• Certain state laws give homeowners the right to rescind sales contracts for properties in danger of foreclosure.

• Most states still allow insurance companies to rescind policies if there was a fraud in the representations made to secure the policy.

• Acontract may be rescinded if there was fraud in the inducement, meaning a fraud with the underlying transaction and not with the nature of the contract or document signed.

• Under the Truth-in-Lending Act, consumers refinancing their principal residence or taking out a home equity line of credit may, with certain exceptions, rescind the loan within 3 business days and not owe any interest or fees.

References in periodicals archive ?
Ideally, D&O policies should not be rescindable, except in the most extraordinary circumstances wholly unrelated to "securities fraud" allegations.
As of June 30, 2012, coverage on approximately 1,300 loans, representing total potential claim payments of approximately $97 million, that we had determined was rescindable was affected by our decision to suspend such rescissions.
As of March 31, 2012, coverage on approximately 860 loans, representing total potential claim payments of approximately $65 million, that we had determined was rescindable was affected by our decision to suspend such rescissions.
The Hartford's Priority Protection(SM) is a highly flexible, non- rescindable policy designed for public and private organizations of all sizes.