V. Modification, Extinguishment, and Renewal, C. Rescission, Termination, or Discharge, 1. Nature of Contractual Rescission, Termination, or Discharge, § 513 - Methods of discharge or termination of contracts
Generally, a contract may be canceled only under its own terms or through mutual agreement. Contracts have the effect of law for the parties and may be dissolved only through the consent of the parties or on grounds provided by law. A contract may be discharged by performance in accordance with its terms, or by the expiration of the time during which it is to remain operative. In addition, there are several other methods of discharging contracts, including rescission by agreement or by virtue of a contractual provision, rescission for original invalidity, and rescission for failure of consideration or a material breach or default. Parties to a valid contract may rescind or abandon it, or substitute another in its place, or by conduct inconsistent with the continued existence of the original contract estop themselves from asserting any right thereunder.
To "rescind" a contract is to abrogate or cancel the contract, unilaterally or by agreement, or to make void; to repeal or annul.
Rescission is an equitable remedy that invalidates an agreement, not a cause of action, which rests on the equitable principle that a person shall not be allowed to enrich him- or herself unjustly at the expense of another. The effect of the remedy of rescission is generally to extinguish a rescinded contract so effectively that in contemplation of law it has never had existence, and to put or restore the parties to status quo. The remedy of rescission and restitution is an alternative to damages in an action for breach of contract.
The termination of a contract is not presumed, and the burden of establishing it rests upon the party who asserts it.
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Innovative Modular Solutions v. Hazel Crest School Dist. 152.5, 2012 IL 112052, 358 Ill. Dec. 343, 965 N.E.2d 414, 279 Ed. Law Rep. 424 (Ill. 2012)
, as modified on denial of reh'g, (Mar. 26, 2012).
In re Nickels Midway Pier, LLC, 372 B.R. 218 (D.N.J. 2007)
As to rescission by agreement, see §§ 524 to 534 .
Devine v. Buki, 289 Va. 162, 767 S.E.2d 459 (2015)
Bossie v. Boone County Bd. of Educ., 211 W. Va. 694, 568 S.E.2d 1, 168 Ed. Law Rep. 945 (2002)
"Rescission" of a contract is the abrogation, annulment, avoidance, or cancellation of the contract, especially a nullification of the contract by act of a party. Hoeft v. Five Points Bank, 248 Neb. 772, 539 N.W.2d 637 (1995) .
Haman Ents., Inc. v. Sharper Impressions Painting Co., 2015-Ohio-4967, 50 N.E.3d 924
(Ohio Ct. App. 10th Dist. Franklin County 2015).
A rescission is an avoidance of a transaction and will normally be accompanied by restitution on both sides; rescission is thus less a remedy and more a matter of conceptual apparatus that leads to the remedy. Kofmehl v. Baseline Lake, LLC, 167 Wash. App. 677, 275 P.3d 328 (Div. 3 2012) , aff'd, 177 Wash. 2d 584, 305 P.3d 230 (2013) .