Rescind Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Rescind, written in plain English, along with examples of how it is used.
What is Rescind?
(v) Rescind is defined as the action by which the parties to an agreement or contract decides to stop furtherance of the agreement or contract by a mutual agreement whereby the position prior to the signing of the agreement is restored
History and Meaning of Rescind
The term rescind finds its roots in the Latin term "rescindere," which means "to cut off." It is a legal term that refers to the act of revoking or rescinding a contract or agreement, essentially nullifying or terminating it as if it never existed. The main purpose of rescinding a contract is to restore the parties to their original positions before entering into the agreement. It allows them to be free of the legal obligations and responsibilities that the contract had imposed on them.
Rescission can take place by mutual agreement of the parties, or it can be ordered by a court in cases where one of the parties breached the contract or where the agreement is deemed illegal or cannot be fulfilled.
Examples of Rescind
John signed a contract to buy a car from Linda but later changed his mind. He contacted Linda to rescind the contract, and both parties agreed to cancel the agreement. John and Linda are now no longer obligated to fulfill the terms of the agreement.
In a business merger, one of the companies discovers significant accounting irregularities, which were not previously disclosed. The company may seek to rescind the agreement and restore its assets to its pre-merger position.
Mary signed an apartment lease but later discovered that the apartment complex had a history of flooding. Mary may seek to rescind the lease if the landlord failed to disclose the existing condition of the property
Legal Terms Similar to Rescind
Termination: The act of ending a contract or agreement before its expiration date.
Revoke: The cancellation of a contract, license, grant, or privilege by the entity that granted the right.
Annulment: The declaration by a court that a marriage, contract, or legal proceeding is invalid or void, usually because of a defect in the formation of the agreement.