What Is Rescission?
Rescission is the cancellation or "unwinding" of a contract, returning the parties as nearly as possible to the positions they were in before they entered it. Instead of awarding damages to enforce the deal, rescission erases it: each side gives back what it received. It is an equitable remedy used when a contract should not stand at all.
Grounds for Rescission in Florida
- Fraud or misrepresentation that induced the agreement
- Mutual mistake about a basic fact
- Duress or undue influence
- Lack of capacity, such as a contract with a minor
- A statutory right to rescind, such as the federal three-day right to cancel certain loans
How Rescission Works
A party seeking rescission must generally act promptly on discovering the grounds and must be able to restore what it received, so that the other side can be put back in its original position. Continuing to accept benefits after learning of the problem can waive the right to rescind. Rescission is often pleaded as an alternative to a claim for damages.
Related Terms
- 3-Day Right of Rescission — A statutory rescission right
- Voidable Contract — The kind of contract rescission unwinds
- Duress — A ground for rescission
Barnes Walker
Barnes Walker's attorneys pursue and defend rescission and contract-cancellation claims in Florida real estate and business disputes. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC