Discharge by Rescission

Discharge by rescission occurs when a contract is canceled or revoked, effectively returning both parties to their original positions before the contract was made. This usually happens when there are significant issues, such as misrepresentation, fraud, or mutual mistake at the time of agreement. Rescission is a legal remedy that allows parties to undo a deal and avoid any further obligations under the contract. It’s important that both parties agree to this cancellation, or that a court orders it based on the circumstances surrounding the contract.