Legal Definitions - mutual rescission

Definition: Mutual rescission is an agreement between two parties to terminate a contract and discharge all remaining duties of performance. It is also known as an agreement of rescission or abandonment.

For example, if Party A and Party B enter into a contract for Party A to provide services to Party B, but Party A is unable to fulfill their obligations, they may mutually agree to rescind the contract and terminate their duties. This would restore both parties to their pre-contractual positions.

Mutual rescission is different from unilateral rescission, which is when one party unilaterally cancels a contract due to a legally sufficient reason, such as the other party's material breach.

Related terms: Rescission, avoidance, termination, cancellation, rejection, repudiation, revocation, equitable rescission, legal rescission.