What does recission mean in contract law?

Recission in contract law refers to the cancellation of a contract, effectively restoring the parties involved to their positions before the contract was made. This means that any obligations, rights, or benefits that arose from the contract are nullified, allowing both parties to return to their initial state prior to entering into the agreement.

In practice, recission may occur due to various reasons such as misrepresentation, fraud, undue influence, or mutual mistake, enabling parties to avoid the enforced terms of a contract that they did not enter into willingly or with full understanding. This legal remedy is crucial as it ensures fairness by returning all parties to their original circumstances, rather than forcing them to adhere to a contract that may have been compromised in some way.

The other choices represent different concepts in contract law, such as modifying agreements, adding terms, or negotiating conditions, but do not capture the primary essence of recission, which is centered around cancellation and restoration of pre-contractual positions.