RESCISSION, re-sish'iin, a legal term designating the act of rescinding or abrogating a voidable contract, that is, a 'contract in force but which owing to some injustice, infirmity or demand of justice or public policy may be an nulled, and refers to the dissolution of the con-. tract through the will of the parties involved instead of rough an action in court, in which case the term ucancellation" is employed. The rescission may take place through the inclusion of a clause providing for it in the contract; through evidence of fraud practised when the contract was made; inadequacy of tion through the employment of fraud; the eitercise of undue influence, as resulting from confidence and friendship, the relation of. hus band and wife, parent and child, principal and agent, trustee, executor or administrator and heir or legatee; mistake in drafting the con tract, or_ misunderstanding of the terms em played, or want of authority on the:part of an agent or officer; the contractors of minors on the application of the minor,.and of people insane or under the influence of intoxicants, or made under duration or stress; failure of one of the contracting parties to perform his part of the contract, either through inability or refusal; failure of consideration, or noe -existence of sub ject matter, but not through depreciation after the consummation of the contract; and, in the case of a selling contract, the discovery before transfer of possession, that the purchaser in tends making illegal use of the purchase. In
surance policies cannot be rescinded by either party without the consent of the other unless the right of rescission be included in the policy. The right to rescind belongs only to the party without fault. The act of rescission may be effected by an act of party, notifying the other of intention; or by an act in equity in order that the instrument may not later be used to the annoyance or disinterest of an innocent party. Right to rescind is lost through. unreasonable or inexcusable delay, or by an act at law to recover damages; but an action in court for recovery of damages or property may follow rescission. The party rescinding must place the other in state quo; he may not rescind and retain the benefits derived from the contract; and no rights received through it remain upon its rescission.