Rescission

by Richard Hanke and Emmanuel Sheppard, 3 Verulam Buildings

A Practice note that provides an overview of rescission as a remedy for defects in a contract's formation, which serves to unravel the contract and restore the parties to their pre-contractual position. This note explains the nature of this powerful remedy, distinguishing it from termination for breach, and details the primary grounds upon which a contract may be rescinded, including misrepresentation, duress and undue influence. It examines the key differences between rescission at common law and in equity, outlining the stricter requirements of common law versus the more flexible equitable approach. Furthermore, this Practice note discusses the various factors that can act as bars to rescission, such as affirmation, undue delay, and the acquisition of rights by a third party. The guidance also addresses the court's statutory discretion under the Misrepresentation Act 1967 to award damages in lieu of rescission and outlines the procedural steps for effecting rescission.