Rescission in contract law refers to the cancellation or annulment of a contract by a party involved in the contract. It is a legal remedy available to parties when they believe that there has been a breach of the contract by the other party and they want to cancel the contract.

Rescission can be unilateral or mutual. In a unilateral rescission, one party has the power to cancel the contract without the agreement of the other party. This can be done if the other party is in breach of the contract. Mutual rescission, on the other hand, requires the agreement of both parties to cancel the contract.

Rescission can be used to address various types of contract breaches, such as fraud, duress, misrepresentation, mistake, undue influence, or failure of consideration. For example, if a party is induced to enter into a contract based on fraudulent misrepresentations made by the other party, the first party can seek rescission of the contract.

To successfully seek rescission, the party must show that the breach was material, that is, it was significant enough to justify the cancellation of the contract. Also, the party seeking rescission must act promptly and communicate their intention to rescind the contract to the other party.

After rescission, the parties are released from their obligations under the contract, and the parties must mutually restore the consideration exchanged under the contract. Restitution is often used in contract law to restore the parties to their status quo ante, that is, to put them in the position they were before the contract was entered into.

In conclusion, rescission is a legal remedy available to parties to cancel a contract due to a breach by the other party. It can be initiated unilaterally or mutually, and is based on material breaches like fraud, misrepresentation, mistake, and failure of consideration. After rescission, the parties must restore the consideration exchanged and be restored to their status quo ante.