Contracts

    Rescission

    Canceling a contract and returning the parties to the positions they held before it was made.

    Rescission cancels a contract and unwinds it, returning each party to the position it was in before the contract existed. Deposits are typically returned and obligations are released.

    Rescission can occur by mutual agreement, by a contract right such as a cancellation period, or as a remedy ordered by a court, for example after fraud or misrepresentation.

    On the exam

    Rescission undoes the contract and restores the parties to their pre-contract positions.

    Exam trap

    Rescission unwinds the deal; specific performance enforces it. They are opposite responses to a contract problem.

    Tested in

    Contracts (12% of the exam)

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    This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.