Rescission

What is Rescission in Contract Law?

Quick Definition

Rescission is a legal remedy that cancels a contract and returns the parties to their pre-contractual positions. It effectively "undoes" the contract, as if it never existed, due to reasons like misrepresentation, mistake, or undue influence.

In Context

Rescission often comes into play when one party has been misled or coerced into a contract. For example, if a seller misrepresents the condition of a car, the buyer may seek rescission to nullify the contract and recover their money. A famous case illustrating rescission is Car & Universal Finance Co Ltd v Caldwell (1965), where the court allowed rescission after a fraudulent misrepresentation. In exams, you might be asked to identify situations where rescission is appropriate and discuss its effects on the parties involved.

See Also

• Misrepresentation

• Undue Influence

• Mistake in Contract Law

Learn More

Dive into our Tort Law Notes for deeper case law, examples, and revision tips.