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


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 When a contract is rescinded, both parties are restored to the status quo before the contract was entered (as much as possible).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.


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• Acontract may be rescinded if there was fraud in the inducement, meaning a fraud with the underlying transaction and not with the nature of the contract or document signed.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 ?
70) As to reportable transactions, the penalty can be rescinded by the FTB Chief Counsel, but only if (1) the taxpayer on whom the penalty is imposed has a history of complying with the California income and franchise tax laws; (2) it is shown that the violation is due to an unintentional mistake of fact; (3) imposing the penalty would be against equity and good conscience; and (4) rescinding the penalty would promote compliance with the tax laws and effective tax administration.
I urge other insurers to also accelerate the Affordable Care Act's deadline for ending this practice and stop rescinding patients' policies immediately.
The AJCA provides that, notwithstanding any other provision, any IRS determination on rescinding the penalty may not be reviewed in any judicial proceeding.
Therefore, we are rescinding these cleanup calls, and will eliminate the cleanup call provision on all our MBS.
Surprised by the trading of first baseman Eric Karros and second baseman Mark Grudzielanek and excited about the signing of free agent Fred McGriff, Dodgers left fielder Brian Jordan told the club last week he was rescinding his trade demand.
An agreement effectively rescinding the Share Exchange Agreement is to be negotiated between the parties immediately.
Supreme Court upheld a federal court ruling that city officials violated Philip Young's First Amendment rights by granting, then rescinding, a permit for him to lease space on Los Angeles Avenue.
After rescinding over the past few months a total of 4,800,000 options from five directors, three of whom also are key employees, the Company has agreed to issue 350,000 new options to each of the three key employees, with these options being exercisable in specified portions only if certain criteria concerning revenues, earnings and/or market price of the company's stock are met.
The abrupt delay - after Ferraro had written to council members and urged them to act quickly in rescinding the contract with Nederlander Corp.
Americom executed a rescission agreement between it and Typereader in connection with the July 2, 1999, agreement rescinding its relationship with Typereader (&uot;Rescission Agreement&uot;).
Nederlander attorney Adam Burke of Iverson, Yoakum, Papiano & Hatch said his client is prepared to go to court Wednesday to seek a temporary restraining order to keep the city from rescinding the contract on grounds the petition was illegally circulated and the signatures obtained under false pretenses.
BUSINESS WIRE)--June 10, 1996--CLI (OTC BB: CGLB) reached an agreement to repurchase 16 million shares of its common stock by rescinding its 9.