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Recission is the cancellation of a contract. A rescission may be unilateral, as when a party rightfully cancels a contract because of another party's material breach. Rescission can also be mutual, as when the contracting parties agree to discharge all remaining obligations.
Contract Contingencies If either one commits fraud or misrepresentation to induce the sale, such as a seller lying about the condition of a roof, it is immediate grounds to rescind the contract.
The easiest way to cancel your mortgage agreement is to use the notice you received from your lender about your right of rescission. ?Any titleholder can sign it and send it either to their lender or the closing agent to rescind the loan closing,? says Shekhar. You could also write a letter.
Often these conditions are classic examples of why rescission is granted in any contract, such as if you purposely list false information when you apply because you think you might not be accepted otherwise. In such a case, if you paid money to the insurer, it would be refunded in full.
A contract rescission letter is used to terminate a contract formally in writing. Terminating the contract is only possible if the conditions of the contract have been altered or when it is determined the contract was never legal.