Legal Definitions - agreement of rescission

An agreement of rescission is a legal term that refers to an agreement between two parties to terminate a contract and discharge all remaining duties of performance. This can happen for various reasons, such as a breach of contract or a mutual decision to end the agreement.

For example, if two parties enter into a contract for the sale of goods, but one party fails to deliver the goods as promised, the other party may seek rescission of the contract. This would involve terminating the contract and returning any partial performance, such as a deposit or payment, to restore the parties to their pre-contractual positions.

Rescission can also be decreed by a court of equity, which is a court that can provide remedies beyond what is available in a court of law. In this case, the court may order rescission if it determines that the contract was entered into under duress, fraud, or other circumstances that make it unfair or unjust.

It's important to note that rescission is generally only available as a remedy or defense for a non-defaulting party. In other words, if one party breaches the contract, the other party may seek rescission, but the breaching party cannot use rescission as a defense.