What it means
Rescission unwinds a contract from the beginning, treating it as if it had never been made and returning both parties to their pre-contract positions. It is most often available where consent was obtained by misrepresentation, mistake, duress, undue influence, or unconscionable conduct. Rescission usually requires that the parties can be substantially restored to their original positions. The right can be lost by affirming the contract, by undue delay, or where third-party rights have intervened. It differs from termination for breach, which ends a contract only going forward.
How it's used
After discovering the seller had concealed major structural defects, the buyer sought rescission of the purchase contract and a refund of his deposit.