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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 When a contract is rescinded, both parties are restored to the status quo before the contract was entered (as much as possible).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• Acontract may be rescinded if there was fraud in the inducement, meaning a fraud with the underlying transaction and not with the nature of the contract or document signed.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 ?
Che had a season rescinded exactly the exactly " Monk has started the forward in a more attack-minded formation in recent weeks.
"The High Commission has rescinded Mr.Atwal's invitation.
A January Media Bureau order regarding political ad disclosure complaints was rescinded.The Commission's Jan.
MARK Noble will be available for West Ham's first fixture after the international break against Newcastle after the red card he received against Liverpool was rescinded.
"But to equate them with the crimes of a government that has rescinded responsibility for protecting its civilian population and...
NNA - North Korea has rescinded an invitation for a senior U.S.
He added: "In spite of the widespread media reporting that the pay rises had been rescinded, when challenged about the advertised pay rate, a council spokesperson confirmed that the pay rates had never been rescinded.
The board has rescinded a motion it passed last August endorsing NZNO's award of honour and convened a working party to review the award of honour taonga.
WEST BOYLSTON - The Board of Selectmen last week canceled a scheduled disciplinary hearing against Reservoir Motor Lodge, based on the same reasoning it deferred one week earlier to schedule a disciplinary hearing for newly-reported problems at the motel: The motel's license is already rescinded.
80-58, the IRS generally requires four elements for a valid rescission: (1) the transaction must occur under an agreement or contract that (2) during the same tax year is (3) rescinded in a formally proper manner (such as by agreement of the parties) so that (4) the parties are returned to the same position as if that transaction had never occurred.
We have received a response from the Ministry of Information that the decision was illegal and immoral."If the decision is not rescinded, Mashrawi added, he and other parents would take the matter to higher authorities.
The board have rescinded purses when we feel a fighter has not tried.