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A recission of a contract is the destruction or annulling of a contract. A contract cannot be rescinded in part, a whole recission of the contract must be made. In order to have a recission, both parties to the contract must be placed in the position they occupied before the contract was made. Courts have held that a party may rescind a contract for fraud, incapacity, duress, undue influence, material breach in performance of a promise, or mistake, among other grounds.
The relevant section of the Uniform Commercial Code, adopted in some form by almost all states, provides as follows:
"(a) A contract may be rescinded if all the parties thereto consent.
(b) A party to a contract may rescind the contract in the following cases:
Some states' laws regulate door-to-door sales, false labeling, unsolicited merchandise, abusive collection practices, misleading advertising and referral and promotional sales. For example, promotional sales for timeshare properties in some states must allow a certain number of days for the consumer to rescind the agreement. Such laws vary by state, so local laws should be consulted.