rescission

Rescission is a remedy in equity which aims to set aside transactions and perhaps order the payment of money so as to place parties in a dispute in the position they would have been in before any transaction between them had been entered into. Under the laws of England, this equitable remedy is available only when restitutio in integrum is possible. If it is not possible, then the remedy is not available.

Where contracts are concerned, the remedy is available where a mistake or misrepresentation was present at formation of the contract, or where undue influence or duress has tainted the formation of the contract. In these cases, consensus ad idem is not present and the law takes the view that no contract could have been entered by the parties as a consequence. The remedy is not available if it is impossible to place the parties in the position they would have been in.

Rescission is also used at common law to mean that a party has been relieved of its obligations to perform under a contract.

Usage: The remedy of rescission is available only where restitutio in integrum is possible.

Related Words: contract; mistake; restitutio in integrum; undue influence; duress; misrepresentation; rectification; damages; injunction; specific performance.