rescission


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Related to rescission: Equitable remedy

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 While legal systems differ on the precise reasons for which a contract may be rescinded, it may occur due to an act of God or by mutual consent, provided that no substantial progress has been made toward completion of the contract. In the context of finance and economics, some contracts may be rescinded up to a certain point after they come into effect.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 Likewise, the sale of land may be rescinded by either party up to the point the sale is recorded. Sometimes an option contract, especially a stock option, can be rescinded for a certain time after its exercise; in this situation, the person who exercised the option surrenders the underlying in exchange for the cash he/she paid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 ?
The legal concept of rescission refers to the abrogation, canceling, or voiding of a contract that has the effect of releasing the contracting parties from further obligations to each other and restoring the parties to the relative positions that they would have occupied had no contract been made.
Some questions exist over the full scope and current vitality of the tax rescission doctrine, especially when the "unwinding" has a principal purpose of tax reduction or when only some steps but not all of the original transaction are voided by parties.
The most effective way to limit your exposure to E&O claims involving rescission of a policy is to make sure the insured has signed the application.
4) Moreover, the availability of rescission followed by
The disagreement was significant enough that the parties determined to rescind the investment through a "stock rescission agreement.
While some insurers have sought rescission only as to the directors and officers involved in or having knowledge of the wrongdoing, others have sought rescission as to all directors and officers.
The DoD appropriations bill may also be subject to an across-the-board rescission.
It also can sit above all underlying coverage, and drop down in certain situations to provide primary coverage if one of its triggers comes into play (like a denial in coverage, or the exhaustion Side A coverage should be viewed as a proactive risk management measure to guard against the risk of rescission, and protect directors' and officers' personal assets.
The appeals court held that the rescission panel's conclusion that the panel that granted parole had not thoroughly considered the nature of the crimes (murder), was unsupported by evidence.
It has been updated for all pronouncements issued through June 1, 2002, including FAS 145, Rescission of FASB Statements No.
Both the House and Senate recommended a $90 million rescission from amounts previously earmarked for lead based paint hazard reduction activities.
PHILADELPHIA -- CIGNA (NYSE:CI) today announced that it would voluntarily implement federal rescission reforms on May 1, well ahead of the September 23 deadline.