Commercial contracts are important documents that can help manage business relationships and protect your small business from risk. As a business owner, you are likely to enter many contracts over time. Sometimes, things do not go as planned with respect to your contractual arrangements. For example, you might find that a contract your business entered into is problematic, such as if it was based on misleading statements or signed under pressure. If a serious flaw arises in the contract, English law may allow your business to set it aside and return to your original position. <\/p>\n\n\n\n
This process is called \u2018rescission\u2019 (also known as setting aside a contract) and is a way to cancel a contract. Rescission is available where there has been a defect in the formation of a contract and requires the parties to be returned to the positions they were in before they entered into the contract. Setting aside a contract can be a useful remedy in some cases, but it can be complicated and must meet strict requirements. <\/p>\n\n\n\n
This article introduces when your business can set aside a contract and offers practical steps to help protect your interests.<\/p>\n\n\n\n
When things with a contract go wrong, the appropriate remedy<\/a> will depend on the relevant circumstances. For example, if the other party commits a serious or material breach of your business contract, you may have the option to end the contract and potentially claim damages. However, if there was a problem in how the contract itself was made in the first place, you could be entitled to different remedies, such as the right to set aside (or rescind) the contract.<\/p>\n\n\n\n Rescission allows your business to undo the agreement and restore both sides to their previous positions. It unravels the contract and frees your business from ongoing commitments, allowing you to recover money or goods it transferred. Once rescinded, the law treats the contract as though it never existed. <\/p>\n\n\n\n Your business may be able to set aside (rescind) a contract if something went wrong at the point of agreement. Some of the main legal grounds to do so include: <\/p>\n\n\n\n The right to set aside may also apply in other circumstances, and you should take legal advice if you require an understanding of all the circumstances where this remedy can arise.<\/p>\n<\/div>\n\n\n\n This occurs when a party makes a false or misleading statement that persuades your business to enter into a contract. The false statement may be: <\/p>\n\n\n\n Rescission is usually available as a remedy, but the court can award damages instead.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n\n
What is Misrepresentation?<\/h2>\n\n\n\n
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