Legal Definitions - right to rescind

Definition: The right to rescind is a remedy given to a party in a contract when the other party breaches a duty that arises independently of the contract. This is different from a right of termination, which arises when the other party breaches a duty that arises under the contract.

Example: Let's say you hire a contractor to build a deck on your house. The contract states that the deck will be completed within two weeks. However, the contractor fails to complete the deck within the agreed-upon time frame. In this case, you have the right to rescind the contract and hire a different contractor to complete the job.

Explanation: The example illustrates the right to rescind because the contractor breached a duty that arose independently of the contract (i.e., completing the deck within the agreed-upon time frame). As a result, the homeowner has the right to rescind the contract and hire a different contractor to complete the job.