What does rescission of contract aim to achieve?

Rescission of contract aims to place the parties back in their pre-contractual position. When a contract is rescinded, it is effectively cancelled, meaning that the original obligations and rights of both parties are voided. The objective is to restore each party to the state they were in before the contract was formed, as if the contract had never existed. This process often involves reversing transactions or returning goods or other considerations exchanged under the contract.

This approach is typically applied in situations where there is a fundamental issue with the contract, such as misrepresentation, undue influence, or a similar circumstance that undermines the validity of the agreement. By achieving rescission, the law ensures that parties are not bound by terms they did not genuinely agree to or that were established under flawed circumstances.