What is a mutual rescission of a contract?

A mutual rescission of a contract is a legal process used to annul or void a contract between two parties in Mississippi. It effectively ends both parties’ obligations to one another while returning the contractual rights each started with. This is different from a breach of contract, which occurs when one side fails to fulfill their obligations. In order to proceed with a mutual rescission, both parties must agree that the contract should be terminated and each must release the other of any obligations under the contract. Generally, a written notice must be sent to the other party stating the intent to terminate, and both sides must acknowledge and confirm the termination. A mutual rescission must meet a few legal criteria. It must be done without any fraud or wrongdoing, and both parties must have understood the rights they held under the contract. All parties must have had full knowledge of the facts and circumstances and must have been competent to enter into the contract in the first place. Furthermore, the parties must have acted in good faith and in the best interest of the other party. Once the mutual rescission of the contract is complete, the obligations of both parties are fulfilled and the contract is annulled. It is important to note that a contract may not be retroactively ended, so this process must be done before any duties are performed.

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