Also known as: rescind the contract · rescinded the contract · rescinds the contract · rescission of contract · contract rescission · rescission · rescinding contract
Written by attorneys · grounded in primary & secondary sources — see below
An agreement under which each party agrees to discharge all of the other party's remaining duties of performance under an existing contract. The agreement discharges those duties and may require restitution for performance already rendered depending on the parties' intent.
Riley Rivera contracts to purchase a parcel from Ralph Richardson. A recorded lien remains on the property at closing. Riley refuses to proceed and rescinds the contract because the title defect prevents delivery of marketable title.
Rosalind Reed and Raymond Ramos enter a written consulting agreement. They later agree orally to cancel all remaining obligations. The oral agreement discharges the unperformed duties even though the original contract fell within the Statute of Frauds.
Radiant Technologies and Royal Crest Hotels sign a multi-year supply contract. They later execute a written rescission agreement stating that each releases the other from all remaining delivery and payment duties.
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Redwood Bank and Regal Apparel terminate their equipment lease by agreement. The parties disagree on whether Regal must return prepaid rent. The court interprets the rescission agreement to require restitution of the unearned portion.
Rachel Ramirez contracts to buy a home from Ravi Reddy. After signing she learns the house carries a widely known reputation for paranormal activity that the seller never mentioned. Rachel rescinds the contract and recovers her deposit.
A shareholder sells shares to a corporate officer who possesses material inside information about an impending discovery. Upon learning the facts the seller rescinds the transaction and demands return of the shares.
Yes. All unperformed duties under an enforceable contract may be discharged by an oral agreement of rescission even if the original contract was within the Statute of Frauds.
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An agreement of rescission discharges all remaining duties of performance of both parties. Whether restitution is also required depends on how the parties interpret their rescission agreement.
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A buyer may rescind when the seller cannot convey marketable title at closing because of recorded encumbrances, gaps in the chain of title, or adverse claims.
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No. Expressions of rescission do not renounce or discharge claims for damages arising from an antecedent breach.
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…to be traversed and the salesman recommended the type of vehicle purchased. The car could not operate on the roads described and rescission was sought. International Harvester contended that the only warranty extended was contained in the purchase order. It was substantially similar to the one in the present case, providing…