What is rescission of a contract?

Rescission of a contract is a legal remedy that allows parties to a contract to end its obligations and undo the agreement. In the state of North Dakota, rescission is governed by North Dakota Century Code 9-09-03. Under this law, rescission may be granted when a contract was entered into based on fraud, misrepresentation, mistake, or other misconduct of one of the parties. To receive rescission of a contract, the party seeking rescission must provide evidence that the contract was entered into because of fraud, misrepresentation, mistake, or misconduct, and that it would be unfair to enforce it. The party seeking rescission of the contract must also prove that he or she has acted promptly and that all contracts are returned in the same condition it was received in order to be considered for rescission. The party seeking rescission must also provide evidence that they have taken reasonable steps to mitigate any damages or losses resulting from the rescission. If the court finds in favor of rescission, the contract is considered void and any consideration that was given to the other party is returned or, if that is not possible, restitution is made in its place. In North Dakota, when a contract is rescinded, all parties associated with the contract may no longer take any further actions to enforce it.

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