What is a rescission of a contract?

A rescission of a contract is a legal remedy recognized in Washington state contract law. It is a way for parties to a contract to end all of their obligations under the agreement. It involves the termination of the contract and the restoration of the rights and interests of the parties to those that existed prior to the contract being formed. When a contract is rescinded, it is as if it never existed. All parties must return anything they received under the contract to the other side. This might include money, property, or anything else that was part of the deal. The other terms of the contract, such as confidentiality or non-compete clauses, will also be eliminated. Rescission of a contract can be voluntary or ordered by a court. Both parties can agree to rescind a contract, known as a mutual rescission. If a party believes the other violated the agreement, then they can ask a court to rescind the contract. The court may grant the rescission if it finds that the contract was formed under circumstances of fraud, duress, mistake, or lack of consent. In Washington, the law of rescission is generally based upon the common law doctrine of unjust enrichment and the principle of equity. It allows a court to set aside a contract when one party has not been given a fair exchange for the consideration promised in the contract. This can help protect both parties from unfair practices or transactions.

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