Business and Commercial Litigation
Commercial Remedies
Grounds include fraud, mutual mistake, duress, undue influence, and material failure of consideration. The rescinding party must generally restore what it received and act promptly on discovering the ground.
Rescission and damages for breach are alternative remedies.
Alternative Names:
Contract Rescission|Cancellation
Why it Matters?
Prompt election is required, and a party that continued performing or accepting benefits after discovering the ground has affirmed the contract and lost the remedy. That affirmation happens easily in ongoing commercial relationships where performance continues while the parties negotiate. Restoration of consideration is also required, which makes rescission impractical where the received performance cannot be returned.
Frequently Confused with
Related terms
Frequently asked questions
How is the remedy lost?
What must the rescinding party do?
