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Contracts • Excuse of Non-Performance
K#135
Legal Definition
Rescission occurs when both parties agree to cancel the contract before completion of performance. It is not enforceable if the work has already been completed.
Plain English Explanation
When two people come together to form a contract, they have both agreed to be legally bound to mutual obligations. Usually that obligation involves someone performing some task and someone else paying for that performance. However, sometimes people regret entering into a contract and would prefer it if the contract didn't exist. If all parties agree to a contractual divorce, then they can rescind the agreement, effectively terminating it. Note that this option isn't available if one of the parties has completed their part of the bargain.
Visual Aids
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