Rescission
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In contract law, rescission (to rescind or set aside a contract) has been defined as the unmaking of a contract between parties.[1] Rescission is the unwinding of a transaction. This is done to bring the parties, as far as possible, back to the position in which they were before they entered into a contract (the "status quo ante"). This is an equitable remedy and is discretionary. The court may decline to rescind a contract if one party has affirmed the contract by his action (see Long v Lloyd [1958] 1 WLR 753) or a third party has acquired some rights or there has been substantial performance in implementing the contract.
In common law jurisdictions, court judgments may also be rescinded, here meaning to be set aside or made void, on application to the court that granted the judgment or a higher court. Applications to rescind a judgment are usually made on the basis of error or for good cause.
In finance, law, and insurance, rescission is the termination of a contract from the beginning (as if it never existed), rendering it void ab initio. The insurer has the right to rescind a policy due to concealment, material misrepresentation, or material breach of warranty. In 2008, a judge ruled borrowers who refinanced into an adjustable-rate mortgage could force the bank to rescind their loans.[2]
In American government, rescission authority rests with the President. This authority was granted in the Congressional Budget and Impoundment Control Act of 1974. The President can force Congress to vote on rescinding (or permanently withholding) already appropriated funds.[3] The average amount Presidents have requested since 1974 has been approximately $15 billion.[4]
In parliamentary procedure, the motion to rescind, repeal or annul is used to cancel or countermand a motion previously adopted.
[edit] References
- O'Sullivan, Dominic; Steven Elliot, Rafal Zakrzewski (February 2008). The Law of Rescission. Oxford University Press. ISBN 0-1992-5011-1.
[edit] Notes
- ^ Abdallah, Inc. v. Martin, 242 Minn. 416, 420, 65 N.W.2d 641, 644 (1954).
- ^ Keating G. (2008). Mortgage Rescission Could Be Class Action Nightmare for U.S. Banks. Insurance Journal.
- ^ rules.house.govrules.house.gov
- ^ Pete Du Pont (2006-04-26). "opinionjournal.com". opinionjournal.com. http://www.opinionjournal.com/columnists/pdupont/?id=110008285. Retrieved on 2009-06-18.
[edit] External links
- Condominium and Pre-Construction contract rescission and deposit recovery
- Health Care Rescission Legislative Hearing, video playlist of testimony by legislators, health care industry officials, as well as people who were denied health care due to up to 2000 points of criteria which could trigger a rescission investigation and deny a person access to essential services emergency health care during that investigation period.
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