rescission

re·scis·sion   (rĭ-sĭzh'ən)    n.  The act of rescinding. [Latin rescissiō, rescissiōn-, from rescissus, past participle of rescindere, to rescind; see rescind.]

Rescission

The right of an individual involved within a contract to return to the identical state as before they entered into the agreement, due to courts not recognizing the contract as legally binding.

Investopedia Commentary

This is an important factor in the business world, as contracts are commonplace. Should a contract not be legally binding, most often courts will try to return the non-liable parties affected to the state they were in before the contract was entered.

rescission

The cancellation of a previous exercise of an incentive stock option, generally because of a substantial drop in the price of the stock acquired through the exercise. Rescission results in the employee surrendering stock in exchange for money that was paid for the stock.

Main Entry: re·scis·sion
Pronunciation: ri-'si-zh&n
Function: noun
: the act, process, or fact of rescinding esp. a contract; specifically : the equitable judicial remedy of rescinding a contract in a suit brought by one of the parties —compare REFORMATION —re·scis·so·ry /ri-'si-z&-rE, -'si-s&-/ adjective