What does rescission mean in contract law?

• A. Cancel or annul the contract
• B. Extend the contract
• C. Modify the terms of the contract
• D. Assign the contract to a third party

Answer: (A)

Rescission means undoing a contract and restoring the parties to the position they were in before the agreement. It effectively cancels or annuls the contract as if it never existed, and usually requires returning any value exchanged under the deal. This is different from simply ending the contract or changing its terms. The goal is to put the parties back in their pre-contract state. The other options would not achieve that undoing: extending the contract lengthens obligations, modifying the terms changes the agreement, and assigning it transfers rights to someone else while leaving the contract itself intact.