Also known as: cancels · cancelled · canceling · cancellation · cancellations · annul · revoke
Written by attorneys · grounded in primary & secondary sources — see below
An act of annulling or revoking a legal instrument, obligation, or authority.
President Rivera signs a comprehensive appropriations bill funding multiple agencies. Weeks later the President issues an order striking the funding line for a particular environmental program. Congress challenges the order as exceeding executive authority. The court holds the action invalid because the President may approve or reject an entire bill but may not unilaterally nullify discrete provisions.
Settlor Carmen Choi executes a revocable trust transferring real estate to her children. Two years later she executes a new instrument purporting to revoke the trust and redirect the property. Her adult children contest the revocation on grounds that Choi lacked capacity. The court applies the same standard used for will execution and upholds the revocation because Choi possessed the requisite mental capacity at the time.
Select any source to read its text and confirm it supports the definition.
Contractor Charlotte Chung promises to complete renovations even if the owner fails to obtain a permit. The owner never secures the permit and later claims discharge. Chung had not revoked the promise before the owner changed position by ordering materials. The court holds Chung's duty remains enforceable because the promise was not withdrawn before reliance occurred.
Seller Cascade Manufacturing fails to deliver custom machinery by the contract date. Buyer Cecilia Cabrera notifies the seller that she is cancelling the contract and demands return of her deposit. The court permits cancellation and restitution of the price paid because the seller's nondelivery constituted a total breach.
Central Dynamics redeems outstanding preferred shares pursuant to its articles. After redemption the corporation treats the shares as no longer outstanding. The court confirms that once redeemed the shares lose their status as issued and outstanding equity.
Claire Campbell contributes funds to a trust created by her brother. The trust instrument gives the brother sole power to revoke. When creditors seek to reach the contributed assets, the court determines that Campbell is a settlor only of the portion she funded and that the brother's revocation power does not extend to her contribution.
A buyer may cancel when the seller fails to deliver, repudiates, or when the buyer rightfully rejects or justifiably revokes acceptance. Cancellation allows recovery of any price already paid in addition to other remedies.
Supporting sources
The President may approve or reject an entire bill but may not unilaterally cancel or amend discrete portions of an enacted statute. Such action exceeds the constitutional veto power.
Supporting sources
The capacity needed to revoke a revocable trust is the same as that required to execute a will. A settlor who meets that standard may revoke without additional formalities unless the trust terms provide otherwise.
Supporting sources
Shares remain outstanding until they are reacquired, redeemed, converted, or cancelled. Once properly cancelled they cease to be issued shares and no longer carry voting or economic rights.
Supporting sources
…v. Walker, post , p. 618, at 631. [^maj-16]: See Hand, The Bill of Rights (1958) 70: "[J]udges are seldom content merely to annul the particular solution before them; they do not, indeed they may not, say that taking all things into consideration, the legislators' solution is too strong for the judicial stomach. On…