What does rescission mean?
Rescission is a formal legal term for cancelling or undoing a contract, agreement, offer, or similar legal act. It is most often associated with contract law, where a transaction that is void or voidable may be set aside, sometimes with the aim of restoring the parties to the positions they would have occupied had the transaction never occurred. The word can also refer to the withdrawal of an offer or the annulment of another legally binding arrangement. In general use, cancellation is more approachable, while revocation often describes withdrawing authority, permission, or an offer. Rescission nevertheless remains useful when precision matters: it identifies the legal cancellation of an arrangement rather than simply the abandonment of a plan or the end of an activity.
nounThe cancellation or annulment of a contract, agreement, offer, or other legal act, typically on the ground that it is void or voidable. The term is chiefly used in legal contexts.
- The cancellation or annulment of a contract, agreement, offer, or other legal act.
"The court ordered the rescission of the agreement after both parties consented to terminate it."
"The tenant sought the rescission of the lease after the landlord breached the agreement."
"The parties agreed to the rescission of the offer before a formal contract had been signed."
Used when referring to multiple cancellations or annulments of legal agreements or acts.
"The court considered three petitions for rescissions of the contracts."
Rescission is the legal equivalent of taking a transaction back and returning the parties to where they began.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does rescission come from?
Rescission entered English from the late Latin noun rescindere meaning “to cancel, revoke,” with the noun rescissio denoting a cancellation or cutting off. The Latin verb combined the prefix re-, conveying undoing, with scindere, meaning “to cut, split.” The word appeared in English in the 17th century in legal writing. Related English words include rescind, while scission and incision preserve the same cutting-related Latin root.
How rescission is actually used
This is formal and primarily legal vocabulary. Outside legal contexts, cancellation is usually more natural, while revocation is preferred when an offer or grant of authority is being withdrawn.
Easily confused with rescission
Rescission usually means cancelling a legal transaction or undoing an agreement, whereas revocation more often means withdrawing an offer, permission, appointment, or authority.