How Do You Rescind A Business Contract?
Rescinding a contract is not the same as termination for breach of a contract. In the case of termination for breach, the breaching party may be required to compensate the other party for the loss of any profits that the other party might have made if the contract had been fully performed. In the case of rescission, each party is required only to do what is necessary to put the other party in the same position that he would have been in if the contract had never been signed in the first place. Research the contract law of your state to determine if it allows a 72-hour “cooling-off period” in which to cancel a signed contract for certain types of transactions. If you signed the contract less than 72 hours ago and the contract concerned an eligible transaction, you may rescind it. Cooling-off periods generally apply to buyers in consumer sales contracts. Examine the contract to determine if it specifies any grounds for rescission. Real estate contracts, for example, often contain clauses
