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 While legal systems differ on the precise reasons for which a contract may be rescinded, it may occur due to an act of God or by mutual consent, provided that no substantial progress has been made toward completion of the contract. In the context of finance and economics, some contracts may be rescinded up to a certain point after they come into effect.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 Likewise, the sale of land may be rescinded by either party up to the point the sale is recorded. Sometimes an option contract, especially a stock option, can be rescinded for a certain time after its exercise; in this situation, the person who exercised the option surrenders the underlying in exchange for the cash he/she paid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 ?
Aaron Michael Oquaye, held that it was proper that the Majority Leader state the reasons for the rescission.
Ononuju's claim for rescission based on defendants' alleged "fraud and/or collusion" has not been pleaded with specificity.
Reversing Civil Court's grant of summary judgment, the Appellate Term held that while Florida law regarding rescissions applies, New York courts require the same standard of proof as New York insurers are held to: actual proof of mailing or proof of a standard office procedure.--LNR
Impact of Oil Prices Fluctuations on Performance: The gradual recovery in oil prices, coupled with the structural changes contemplated in the sixth rescission waiver and amendment are expected to translate into higher AADSCRs.
The revenue procedure also outlines when the 1RS will not grant a rescission:
98-54 lists three situations that can result in a rescission of a 90-day letter and several in which the IRS will not grant rescission.
GE (NYSE:GE) announced on Wednesday the receipt of approval of its request to the Financial Stability Oversight Council (FSOC) for rescission of GE Capital's designation as a nonbank Systemically Important Financial Institution (SIFI).
Although Ohio and Michigan were the 33rd and 34th states to apply for a BBA Con-Con, the opponents of an Article V convention had succeeded in bringing about the passage of Con-Con rescission (cancellation) resolutions in 17 states during the years 1988 to 2010 (see "Rescinded Con-Con Applications, 1988-2010" map).
"The rescission of CubaA's designation as a state sponsor of terrorism reflects our assessment that Cuba meets the statutory criteria for rescission," the statement said.
"The rescission of Cuba's designation as a state sponsor of terrorism reflects our assessment that Cuba meets the statutory criteria for rescission," the statement said.
"While the United States has significant concerns and disagreements with a wide range of Cuba's policies and actions, these fall outside the criteria relevant to the rescission of a State Sponsor of Terrorism designation," said Rathke.