Rescission (Contract Law) - Wikipedia
Rescission (Contract Law) - Wikipedia
Rescission (Contract Law) - Wikipedia
law)
Taxonomy
Rescission is used throughout the law in a
number of different senses.[2] The failure
to draw these crucial distinctions is
productive of serious confusion. Although
Judicature legislation has been enacted
throughout the common law world, and
jurisdictions vary in their recognition of a
distinct body of law known as equity,
reference to the jurisdictional origins is
still important for the purposes of
exposition.
In court
Rescission is an equitable remedy and is
discretionary.[4] It is used as a synonym for
termination at law. A court may decline to
rescind a contract if one party has
affirmed the contract by his action,[5] or a
third party has acquired some rights or
there has been substantial performance in
implementing the contract. To improve
chances of being granted rescission,
parties may do well to describe those
circumstances are giving rise to an
entitlement to terminate, as was done in
Koompahtoo Local Aboriginal Land Council
v Sanpine Pty Ltd.[6] Furthermore, because
rescission is supposed to be imposed
mutually upon both sides to a contract, the
party seeking rescission normally must
offer to give back all benefits he or she has
received under the contract (an "offer of
tender").
By private companies
In finance, law, and insurance, rescission is
the termination of a contract from the
beginning (as if it never existed), rendering
it void ab initio. In 2009, one judge ruled
that borrowers who refinanced into an
adjustable-rate mortgage could force a
bank to rescind mortgage loans if it acted
similarly inappropriately.[9] Rescission is
typically viewed as "an extreme remedy"
which is "rarely granted".[10]
Notes
1. Abdallah, Inc. v. Martin, 242 Minn. 416,
420, 65 N.W.2d 641, 644 (1954).
2. See generally, Heydon, Leeming and
Turner, Meagher, Gummow & Lehane's
Equity: Doctrine and Remedies (5th ed,
2015) 897-8
3. Bant, E. "Reconsidering the Role of
Election in Rescission" . (2012) 32(3)
Oxford Journal of Legal Studies 467.
4. Alati v Kruger [1955] HCA 64 , (1955)
94 CLR 216 at p 223, High Court
(Australia).
5. Long v Lloyd [1958] EWCA Civ 3 ,
[1958] 1 WLR 753, Court of Appeal
(England and Wales).
6. Koompahtoo Local Aboriginal Land
Council v Sanpine Pty Ltd [2007] HCA
61 , (2007) 233 CLR 115, High Court
(Australia).
7. Vadasz v Pioneer Concrete (SA) Pty
Ltd [1995] HCA 14 , (1995) 184 CLR
102.
8. Groves v Matt O'Connor & Associates
Pty Ltd [2015] NSWSC 664 , Supreme
Court (NSW, Australia).
9. G. Keating (July 7, 2008). "Mortgage
Rescission Could Be Class Action
Nightmare for U.S. Banks" . Insurance
Journal.
10. Ferrara D. (2007). Directors and
Officers: Side A Only Coverage
Working Through the Hype . FDCC
QUARTERLY Summer 2007.
11. "Rules of the London Stock Exchange"
(PDF). London Stock Exchange.
January 3, 2018.
12. "Bedingungen für Geschäfte an der
Frankfurter Wertpapierbörse" (PDF).
January 3, 2018. p. 22. Archived from
the original (PDF) on 2018-02-25.
13. Editor, Helen Dunne, Associate City
(2001-12-01). "Trader's slip leaves UBS
Warburg £71m poorer" . ISSN 0307-
1235 . Retrieved 2018-02-25.
14. L. Girion (June 17, 2009). "Blue Cross
praised employees who dropped sick
policyholders, lawmaker says" . Los
Angeles Times.
15. HealthCare.Gov Website Timeline
"What's Changing and When"
16. Committee on Energy and Commerce.
(2009). Supplemental Information
Regarding the Individual Health
Insurance Market Archived 2010-12-
03 at the Wayback Machine. U.S.
House of Representatives. See also
Case studies: examples of health
insurance companies rescinding
individual policies Archived 2010-08-
06 at the Wayback Machine.
17. Murray Waas (April 22, 2010).
"Exclusive: WellPoint Routinely Targets
Breast Cancer Patients" . Reuters.
18. Emily Barry (April 9, 2010). "Health
Plan Loses Court Battle over
Rescission; Records show that
Assurant Health routinely targeted
HIV-positive members for fraud
review" . American Medical
Association News.
19. HHS Press Office (April 23, 2010).
"HHS Secretary Kathleen Sebelius
Urges WellPoint to Immediately Stop
Dropping Coverage for Women with
Breast Cancer" . U.S. Department of
Health and Human Services. Archived
from the original on October 18, 2013.
20. "Nation’s Largest Insurance Reporting
Agency Agrees To Expand Consumer
Rights" Archived 2013-10-04 at the
Wayback Machine FTC.
21. WellPoint Inc. (April 22, 2010). "PR
Newswire: WellPoint's Reuters
Response" . PR Newswire.
22. MIB Group Inc. "Follow Up Service"
Archived 2010-08-03 at the Wayback
Machine
23. FTC Press Office (June 21, 1995).
"Nation's Largest Insurance Reporting
Agency Agrees To Expand Consumer
Rights" . Federal Trade Commission.
Archived from the original on October
4, 2013.
24. "MIB Group Inc. Catches Consumers
Because it Can" .
AnnualMedicalReport.com. January 7,
2010.
25. Harrington SE. The Health Insurance
Reform Debate . Journal of Risk and
Insurance.
26. Ables A. (2007).
MISREPRESENTATION AND
RESCISSION OF INSURANCE
CONTRACTS Archived 2011-07-26 at
the Wayback Machine. FORC Journal.
References
O'Sullivan, Dominic; Steven Elliot; Rafal
Zakrzewski (February 2008). The Law of
Rescission . Oxford University Press.
ISBN 0-19-925011-1.
External links
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