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 While legal systems differ on the precise reasons for which a contract may be rescinded, it may occur due to an act of God or by mutual consent, provided that no substantial progress has been made toward completion of the contract. In the context of finance and economics, some contracts may be rescinded up to a certain point after they come into effect.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 Likewise, the sale of land may be rescinded by either party up to the point the sale is recorded. Sometimes an option contract, especially a stock option, can be rescinded for a certain time after its exercise; in this situation, the person who exercised the option surrenders the underlying in exchange for the cash he/she paid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 ?
In the case of administrative error, such as an assessment against the wrong taxpayer or for the wrong tax period, or if the taxpayer wants to settle the case right away, it may be faster to use the rescission request procedure.
Q: Did the receipt of the GGGHI's notarial rescission by Angel resulted to the actual cancellation of the contracts of sale?
Those of you living in the following states are off the hook as far as working on a Con-Con rescission resolution: Arizona, Idaho, Oklahoma, Oregon, South Carolina, Virginia, and Wyoming.
16) On October 8, 2009, less than three years after executing the promissory note, the Keirans sent rescission notices to the lender, claiming that they did not receive sufficient copies of required TILA disclosures at the closing.
What this particular scenario highlights, however, is how messy a situation can become when a rescission action is involved.
California regulators have accused health insurers of using rescissions to cancel policies issued to individuals who made innocent mistakes on applications or left out information irrelevant to their health problems.
possibility of rescission by counterparties, promisors will invest to
However, at the time amendments to the contract were executed, there is nothing in the record that suggests that either Younan or plaintiff possessed knowledge of the 2008 global economic crisis sufficient to justify rescission.
The developer stated that it would offer rescission if closings did not take place by April 30, 2006, which was the first day of the project's anticipated budget year.
Since 1974, presidents have submitted rescission proposals totaling $76 billion, of which Congress accepted and rescinded $25 billion.
The accord resulted from negotiations that have been ongoing between HLB and Health Net since July 2008, and covers rescissions by Health Net that occurred between February 2004 and October 2007, according to CHA lawyers.
The Law of Rescission by Dominic O'Sullivan, Steven Elliott and Rafal Zakrzewski (New York: Oxford University Press, 2008) pages v-lxxiii, 3-699.