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To cancel a contract because of misrepresentation, fraud, or illegal procedure.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


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 When a contract is rescinded, both parties are restored to the status quo before the contract was entered (as much as possible).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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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• Acontract may be rescinded if there was fraud in the inducement, meaning a fraud with the underlying transaction and not with the nature of the contract or document signed.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

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
In the Pinochet case, the UK House of Lords sitting in its capacity as a final court of appeal held that the court's power to rescind its own decisions was to be used exceptionally if a decision was made improperly and that there was no question of rescinding a decision by a later order in the same case 'just because it is thought the first order is wrong.' Basically two questions fall for consideration: whether to rescind the court's own decision; if so whether to reverse the previous decision.
"Today's ruling reflects not only the illegality of the Trump Administration's move to rescind DACA, but also the clear and demonstrable benefits DACA provides to New Yorkers across our great state," he added.
"If, by September 5, 2017, the Executive Branch agrees to rescind the June 15, 2012 DACA memorandum and not to renew or issue any new DACA or Expanded DACA permits in the future, then the plaintiffs that successfully challenged DAPA and Expanded DACA will voluntarily dismiss their lawsuit currently pending in the Southern District of Texas," they write.
The FCC's guidance, issued March 2014, on the processing of applications for certain broadcast television shared agreements — including the commonly seen Joint Sales Agreement (JSA), was rescinded. At the time, former Media Bureau Chief Bill Lakereleased a Public Notice to give guidance to the industry about how the Bureau will process pending and future proposed broadcast television transactions.
Baltimore's Goucher College and Tufts University in Medford, Massachusetts, both announced this week that they ha rescinded honorary degrees given to Cosby.
24, a letter from Marquette University President Michael Lovell and Provost Daniel Myers announced that school's board of trustees had decided to rescind the honorary degree given to Cosby in 2013.
Michael Reif ruled in favor of Dworkin, but didn't rescind the contract.
13, the Supreme Court ruled on a case that will have repercussions for borrowers seeking to rescind their mortgages under the Truth in Lending Act (TILA).
The law did not, as Bank of America argued, require the homeowners to have sued within three years to rescind, the court said.
WORCESTER -- The mortgage holder of a housing subdivision in the Quinsigamond Village area has blocked the Planning Board from being able to rescind the subdivision approval it gave in 2009 for part of the multi-phase project.
"We are deeply disappointed by the DPRK (North Korean) decision - for a second time - to rescind its invitation for Ambassador (Robert) King to travel to Pyongyang to discuss Kenneth Bae's release.
Summary: BY deciding last Wednesday to rescind a February 2011 decree that permitted illegal buildings to be powered and connected to water, landline telephony and drainage utilities, the cabinet did in fact reassert the principle of the supremacy of law which is doubtlessly a primal pillar of efficient governance.