In English law, rescission is a remedy allowing parties to cancel or set aside a contract, returning them to their pre-contractual positions, typically due to misrepresentation, undue influence, or other factors undermining genuine consent.
Rescission terminates the contractual obligations of both parties, effectively treating the agreement as though it never existed, provided rescission is exercised promptly and fairly.
Rescission ensures fairness and integrity in contractual relationships, protecting parties from unjust obligations created under compromised circumstances.
Purchasers sought to rescind a sale after discovering the seller’s representations about an ironworks were inaccurate. The House of Lords refused rescission because they had relied on their own extensive independent investigation, establishing that actionable misrepresentation requires actual reliance on the representation.
Caldwell sold his Jaguar to Norris, who paid with a worthless cheque and absconded. Caldwell immediately informed police and the AA to trace the car. The Court of Appeal held that where a fraudulent buyer deliberately absconds, the defrauded seller can rescind the contract without communicating directly with the fraudster, thereby defeating later innocent purchasers' claims.
The appellant agreed to lease a salmon fishery from respondents, believing they owned it. In fact, the fishery belonged to the appellant himself under earlier settlements. The House of Lords held the agreement should be set aside for common mistake, but subject to the appellant compensating the respondents for improvements made to the fishery.
The Government of Zanzibar purchased an executive jet aircraft from British Aerospace, alleging misrepresentations about its airworthiness and reliability. The court dismissed the main action for delay and abuse of process, holding that issuing writs at limitation's end without readiness to proceed was impermissible. The judgment clarified that damages under section 2(2) Misrepresentation Act require an extant right to rescission.
Bell and Snelling, appointed to manage the Niger Company by Lever Brothers, secretly engaged in cocoa speculation breaching their duties. When their service agreements were terminated with substantial compensation, Levers later discovered the misconduct and sought to rescind the settlement agreements. The House of Lords held the agreements were not void for mutual mistake and there was no duty to disclose past misconduct.
Mr Long purchased a lorry from Mr Lloyd after misrepresentations about its condition, including that it was in first-class condition and could achieve 40mph and 11 miles per gallon. After discovering defects, Long sought rescission. The Court held that even if rescission for innocent misrepresentation survived completion, Long had lost this right through acceptance by using the lorry and accepting partial payment for repairs.
A property developer purchased land from a council for over £5 million. After completion, a private sewer easement was discovered crossing the site. The developer sought to rescind the contract on grounds of misrepresentation and mistake. The Court of Appeal held that contractual conditions allocated the risk of unknown easements to the purchaser, precluding rescission.
Wimpey sought to rescind a land purchase contract by invoking a contractual clause regarding compulsory acquisition. The purported rescission was held unjustified as the compulsory purchase procedure had begun before the contract date. The House of Lords held this did not constitute repudiation as Wimpey had genuinely, though mistakenly, believed they were entitled to rescind.
September 22, 2026
National Case Law Archive
September 22, 2026
National Case Law Archive
September 22, 2026
National Case Law Archive