Meaning of Rescission of Contracts

Rescission of contracts is a legal term used to describe the act of canceling or voiding a contract. This can occur for a variety of reasons, including fraud, misrepresentation, mistake, or breach of contract. In this article, we’ll explore the meaning of rescission of contracts in more detail, examining what it entails and how it works.

What is Rescission of Contracts?

Rescission of contracts is a legal remedy that may be pursued by a party to a contract for a variety of reasons. Essentially, it allows one party to cancel or void a contract that they have entered into with another party. This can occur when one of the parties has committed a material breach of the contract, or when one of the parties has engaged in fraudulent or misleading behavior.

When a contract is rescinded, it is considered to be cancelled, and both parties are returned to their pre-contractual positions. This means that any money or property that has changed hands as a result of the contract will be returned to the original owner.

How Does Rescission of Contracts Work?

Rescission of contracts can occur in a few different ways, depending on the reason for the rescission and the nature of the contract itself. For example, if one party has committed fraud or made a misrepresentation, the other party may be able to rescind the contract by providing notice of their intention to do so and outlining the reasons for the rescission. If the other party agrees to the rescission, the contract will be cancelled, and any money or property that has changed hands will be returned.

If the rescission is based on a breach of contract, the process may be more complicated. In this case, the party seeking rescission will need to prove that the other party has committed a material breach of the contract. This may involve going to court and presenting evidence to support the claim, such as contract terms, communications between the parties, and testimony from witnesses.

Once a court has determined that a material breach has occurred, it may order the contract to be rescinded. In some cases, the court may also order the party that breached the contract to pay damages to the other party.


Rescission of contracts can be a complex and challenging process, requiring careful consideration and legal expertise. If you are considering rescinding a contract, it is essential to consult with an experienced attorney who can guide you through the process and help you understand your legal rights and obligations. By understanding the meaning of rescission of contracts and how it works, you can make informed decisions about your legal situation and protect your interests over the long term.