cancellation of a contract and the return of the parties to the positions they would have occupied if the contract had not been made (see status quo [STATUS QUO ANTE]). Grounds for rescission may include original invalidity of the agreement, fraud, failure of consideration, or material breach or default. Rescission may be brought about by the mutual consent of the parties, by the conduct of the parties or by a decree by a court of equity.
See repudiation; revocation.
Source: Barron's Dictionary of Legal Terms, Steven H. Gifis, 5th Edition; © 2016