Legal Definitions - legal rescission

Definition: Legal rescission is the act of undoing a contract by one party for a valid reason, such as the other party's breach of the agreement or a court order. This is also known as voidance. The non-defaulting party can use rescission as a remedy or defense, and it involves returning any partial performance to restore the parties to their pre-contractual positions.

Examples:

• If a homeowner hires a contractor to build a deck, but the contractor fails to complete the work as agreed, the homeowner can rescind the contract and seek restitution for any partial payment made.
• If a car dealership sells a vehicle with a faulty engine, the buyer can rescind the contract and return the car for a refund.

These examples illustrate how legal rescission can be used to undo a contract when one party fails to fulfill their obligations. The non-defaulting party can seek restitution and return any partial performance to restore the parties to their pre-contractual positions.