Contract Disputes: When to Cancel or Rescind a Contract

In cases where a contract dispute may arise, parties may search for various ways to cancel or rescind the contract. During the time that the contract is entered into, the seller or contractor must give the purchaser the right to cancel the contract via a written notice of some sort under California law. The owner of the property must also be given a written notice of the right to cancel the contract, this right to cancel lasts anywhere between 3 to 7 days from the written dated receipt.

Rescinding a contract not only cancels the contract but will actually act as if the contract itself had never existed and was never signed between two or more parties. According to California Civil Code 1689, parties may rescind a contract without court intervention under the following met guidelines:

  • If one of the parties was mistaken about a fact under the contract that another party knew, using the mistake for their own benefit or advantage. This also applies if two or more parties were mistaken about a fact under the contract and can then be mutually rescinded by either or any party involved in the contract.
  • If fraud is involved and one of the parties is misrepresented, the defrauded party may rescind the contract.
  • If the contract is against the general public interest or goes against the law in any way then it may be rescinded.
  • If one of the involved parties fails to provide clear intention and consideration toward the opposing party, such as not providing what was said to be provided under the contract – then it may be rescinded by the affected party.

It is advisable to seek legal guidance from our office today as we strive to help guide you with your specific case. Consult with our office today to discuss your contract and any other business issues you may have.

Attorney Ramona Kennedy cares about your case and will fight for you.

You can contact attorney Ramona Kennedy Law Offices (Kennedy Law LC) for an initial consultation and case evaluation. The first consultation is free of charge. 

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