rescission

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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 While legal systems differ on the precise reasons for which a contract may be rescinded, it may occur due to an act of God or by mutual consent, provided that no substantial progress has been made toward completion of the contract. In the context of finance and economics, some contracts may be rescinded up to a certain point after they come into effect.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 Likewise, the sale of land may be rescinded by either party up to the point the sale is recorded. Sometimes an option contract, especially a stock option, can be rescinded for a certain time after its exercise; in this situation, the person who exercised the option surrenders the underlying in exchange for the cash he/she paid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 ?
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.
80-58, a successful tax rescission has two prerequisites:
Under no circumstances, regardless of the comments made by the insurance commissioner, can the rescission be illegal.
Taxpayers and its owners successfully avoided taxation on the reconversion under the rescission doctrine.
The timber and salvage amendments included in the Rescissions Act were developed in order to expedite agency efforts to prepare salvage sales and also to limit the opportunity for frivolous lawsuits, while still providing environmental protections in an expedited period of time.
introduced an amendment to prohibit use of any savings, realized from rescissions, for tax cuts or increased spending, and to require that all savings go toward deficit reduction.
The proposal would require a health carrier to give individuals affected by pro posed rescissions at least 30 days advance written notice.
1) (Since rescissions cancel previously unobligated appropriated budget authority (BA) that BA can then be used to finance new spending offsetting or decreasing the new BA that needs to be appropriated.
Rescissions are terrible for public relations, and can lead to costly litigation, so it is important to consider the full picture of costs associated with making a decision to move to less up-front review.