What is a rescission of a contract?

Rescission of a contract is a legal term used to describe a situation where a contract is terminated. This usually occurs because one party to the contract is dissatisfied with the agreement. In Colorado, a rescission of a contract can only occur if the contract was procured by fraud, misrepresentation, or mistake. A rescission of a contract is a way to nullify the contract. When a contract is rescinded, it is unenforceable and is considered as if it never existed. This means that both parties are relieve of their obligations and can no longer seek damages or other recourse. In Colorado, a rescission must be requested in writing and specify the reasons why the contract should be rescinded. The rescission must also be given to the other party of the contract so that the other party is aware of the rescission. Once the rescission has been communicated, both parties are no longer obligated to adhere to the contract. Rescission of a contract is a serious decision that should not be taken lightly. It is important to thoroughly read and understand any contracts before entering into them as it is difficult to get out of a contract once it is signed. If you believe you are a victim of fraud or misrepresentation, or that the contract is invalid for any other reason, it is important to consult with a contract lawyer or other legal professional to discuss options for rescission of the contract.

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