What is rescission of a contract?

Rescission of a contract is a legal process that occurs when one or both of the parties involved in a contract decide to end the contract and undo all parties’ rights and obligations that were created by the agreement. In Virginia, rescission is typically used when a contract was created under false or fraudulent conditions. Under Virginia law, rescission of a contract must be done in a timely manner by the party who wants to cancel the agreement. Additionally, the rescinding party must provide valid reasons as to why the contract should be rescinded. Once a contract is rescinded, all obligations created by the contract are immediately terminated and any money paid to the other party will be returned. Virginia law states that the rescinding party must not be the cause of any benefit the other party received based on the contract in order to receive a full refund. If the benefits are not returned, then the party rescinding the contract is responsible for any losses incurred by the other party. Rescission is a beneficial tool when a contract has been entered into incorrectly or fraudulently, and provides a way for the parties to break their contract without having to go to court. However, it is important to note that rescission of a contract may not be allowed in some cases, such as if the contract is for a long period of time. In such cases, the parties must seek the advice of a qualified attorney to discuss their options.

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