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Simple English definitions for legal terms
mutual rescission
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A quick definition of mutual rescission:
Mutual rescission is when two parties agree to cancel a contract they made together. This means they both agree to stop doing what they promised to do in the contract. They also have to give back anything they received from each other. This puts them back to how things were before they made the contract.
A more thorough explanation:
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.