Coupon Accepted Successfully!


Meaning of Rescission

Rescission means a right not to perform the obligation or cancel the contract. When there is a breach of contract by one party, aggrieved party may rescind the contract and need not perform his part of obligation. It will have following effects:
  • The aggrieved party need not perform his obligation, if he does not want to take any legal action against the guilty party
  • The aggrieved can claim compensation for loss
  • The aggrieved party is liable to restore benefit received under the contract, if any

Sunny contracts to supply 100 kg of tea leaves to Ravi for ₹ 8,000 on 15th April. If Sunny does not supply the tea leaves on the appointed day, Ravi need not pay the price. Ravi may treat the contract as rescinded and need not perform his obligation. He may also file a ‘suit for rescission’ and claim damages.


Note: In certain circumstances the court may order to rescind the contract on the application from the aggrieved party. The court may also rescind the contract if the contract is voidable and the aggrieved party applies to the court for rescission or in cases where the contract is unlawful.

Test Your Skills Now!
Take a Quiz now
Reviewer Name