The term 'rescission' in contract law refers to?

Rescission in contract law refers to the act of terminating a contract, which effectively nullifies the agreement and releases both parties from their obligations under the contract. This can occur for various reasons, such as mutual consent, misrepresentation, fraud, or the inability of one party to fulfill their obligations. When a contract is rescinded, it is as if the contract never existed, and both parties are restored to their original positions, as best as possible.

Understanding rescission is important in real estate transactions and other contractual agreements, as it provides a legal remedy for parties who may have entered into a contract under false pretenses or in situations where the contract is no longer deemed enforceable or valid.