What is Rescission of a Contract?

Rescission simply refers to the cancellation or termination or a contract by an individual. More specifically, in contract law, rescission is the right held by individuals which allows them to cancel or repeal the terms of a contract, hence, returning it to the state maintained before the agreement was made.

Rescission can also be regarded as an act of unwinding a contract. When a contract is rescinded, its terms are cancelled or repealed by a party.