BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Rescission is when a contract is rendered null and void, and so is no longer recognized as legally binding. The courts can free non-liable parties from their agreed obligations and, when possible, will effectively seek to restore them to the position they were in before the contract was signed.

Detailed explanation-2: -rescind. v. to cancel a contract, putting the parties back to the position as if the contract had not existed. Both parties rescind a contract by mutual agreement, since a unilateral cancellation of a contract is a “breach” of the contract and could result in a lawsuit by the non-cancelling party. See also: rescission.

Detailed explanation-3: -Rescission may take place if one of the contracting parties lacks the ability to legally enter into a contract. For instance, when a party is under 18 years of age, intoxicated, mentally incompetent, or ill, a party cannot enter into a contract.

Detailed explanation-4: -Rescission of a Contract It is an unwinding of a transaction or undoing of a contract. Rescission can either be mutual or unilateral. Unilateral rescission is generally exercised when it is found that the underlying basis of the contract is basically wrong or on faulty grounds.