What is rescission of a contract?

Rescission of a contract is a legal remedy available in Florida when one or both of the parties have made a mistake. It allows either party to undo the contract and essentially return to the position they were in before the contract. The mistake must be a major mistake in order for rescission to be granted. Examples of major mistakes could include fraud, mistaken identity, or incorrect material information. When rescission of a contract is granted, both parties must return any goods, money or services received under the contract and must undo any legal commitments made in the contract. The court may also be asked to order restitution, which is a payment made by one party to the other party to compensate them for any losses incurred as a result of the contract being rescinded. When there is a dispute over whether a mistake was serious enough to allow for rescission of a contract, a court will decide if rescission is appropriate based on factors such as fairness and the parties’ expectations. In most cases, rescission is requested if a party believes that the other party consistently failed to follow the terms of the contract. Ultimately, rescission of a contract is a legal remedy that allows both parties to undo the contract and get back to the position they were in before the contract was formed. If both parties agree that it is in their mutual best interests, rescission may be granted. A court may also be asked to decide if rescission is appropriate in cases of dispute.

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