Contracts

Rescission

Canceling a contract and returning the parties to the positions they held before it was made.

Rescission cancels a contract and unwinds it, returning each party to the position it was in before the contract existed. Deposits are typically returned and obligations are released.

Rescission can occur by mutual agreement, by a contract right such as a cancellation period, or as a remedy ordered by a court, for example after fraud or misrepresentation.

On the exam

Rescission undoes the contract and restores the parties to their pre-contract positions.

Exam trap

Rescission unwinds the deal; specific performance enforces it. They are opposite responses to a contract problem.

Tested in

Contracts & Agency (13% of the exam)

Open the vocabulary cheat sheet Practice this section

From definition to recall

See this term inside a real exam question.

Pass Texas gives you Texas-specific practice, diagnostics across the 14 exam areas, Trap Library, Math Coach, offline access, and one $59.99 purchase. No subscription. No copied exam questions.

Try 5 free questions

Related terms

Sources

Pearson VUE Texas Real Estate Candidate Handbook

This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.