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To declare a contract void—of no legal force or binding effect—from its inception and thereby restore the parties to the positions they would have occupied had no contract ever been made.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.


v. to cancel a contract, putting the parties back to the position as if the contract had not existed. Both parties rescind a contract by mutual agreement, since a unilateral cancellation of a contract is a "breach" of the contract and could result in a lawsuit by the non-cancelling party. (See: rescission)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
Pacific Drilling SA (NYSE:PACD) declared on Wednesday that it has exercised its right to rescind the construction contract for ultra-deepwater drillship, Pacific Zonda.
Mohammed Morsi returned a day after a mass outpouring of anger that has given new momentum to the opposition demanding that he rescind decrees giving him sweeping powers.
23, 2009, President Barack Obama signed an executive order reversing the global gag rule (also known as the Mexico City Policy)--implemented by President Ronald Reagan in 1984, rescinded by President Bill Clinton in 1993 and reinstated by President George W.
A European Union court has reportedly rescinded a EUR273m fine against a group of shipping companies, called the Trans-Atlantic Conference Agreement (TACA), on Tuesday (30 September) by ruling that the European Commission relied on poor evidence and infringed the rights of the defence.
The Financial Accounting Standards Board (FASB) issued an Exposure Draft that rescinds FASB Statement No.