Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Rescission definition

What does Rescission mean? Rescission is the unwinding of a contract or other transaction so the parties are restored, so far as possible, to their pre-contract position (restitutio in integrum). In practice it is a case law–based, equitable remedy used where consent was vitiated, typically by misrepresentation (fraudulent, negligent or innocent), common or mutual mistake, undue influence, duress, or breach of fiduciary duty. Some statutes create analogous cancellation rights (for example, certain consumer “cooling‑off” rights), but these are distinct. Key features: - Operates ab initio: the contract is set aside and benefits are returned. - May be effected by notice or, where necessary, by court order; the...

Rescission for Misrepresentation in England and Wales: Availability, Bars (Affirmation, Delay, Third-Party Rights), Restitution, Damages in Lieu and Limitation (Misrepresentation Act 1967)

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Practice notes

This Practice Note explains the circumstances and process by which an innocent party may unwind a contract for misrepresentation, the reasons they might take that step, and the occasions when Rescission is not allowed. For guidance on when a party may recover Damages for a misrepresentation, or seek to limit/exclude liability for misrepresentation, see the following Practice Notes:

Misrepresentation—damages as a remedy
Misrepresentations—excluding and limiting liability for them

The remedy of rescission in misrepresentation claims

Where a misrepresentation has persuaded a party to enter a contract, that party can elect to rescind. If that decision is disputed, the party may invite the court to assist in giving effect to the rescission. The consequence of rescission, where it is available, is to restore the parties to the position they occupied before the agreement was concluded. This is often termed rescission ab initio, to set it apart from termination or cancellation, which ends the contract without rendering it void. Rescission is a remedy available whether the misrepresentation was fraudulent, negligent or innocent, so long as the statement was false and it induced the representee to contract...

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Web page updated on 21/05/2026

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