Question

The right of an individual involved in a contract to return to a state identical to that before they entered into the agreement, due to courts not recognizing the contract as legally binding is known as what...?

a. Rescind
b. Reformation
c. Rescission
d. Undo

Answer 1

The aswer is A, rescind.

Step-by-step explanation:

Contract rescission refers to the termination or cancellation of a contract. It is sometimes called “cancellation” or “overturning”. The word rescission comes from the word “rescind” which means to cancel or annul. The purpose of contract rescission is to restore the parties to their original status before the contract was made (the “status quo ante”).

Contracts must be rescinded entirely; that is, the entire contract must be cancelled, not just one part. If only a portion of the contract is to be cancelled, this is usually accomplished under contract reformation laws, not rescission laws. Rescission is often available as a remedy in cases where there are issues with the way that the contract was formed.