A mutual rescission and release agreement cancels a contract though the mutual consent of all parties involved.
- All parties to a contract wish to cancel or “rescind” the agreement
- Negotiating a winding down of contractual obligations
The law provides several means by which parties to a contract can back out of the agreement without being dragged into court. A mutual rescission and release agreement is one way that all parties to a contract can cancel (“rescind”) the agreement without incurring legal liability.
Under a mutual rescission and release, all parties to a contract mutually agree that the contract is null and void. After the mutual rescission and release is executed, none of the original signatories has any further rights or duties under the former contract.
A mutual rescission and release agreement is a simple and efficient way to end a contract, at least so long as all of the parties to the original contract can agree. If there is disagreement about whether the contract should be terminated, signatories may want to try and find a mutually beneficial way to wind down contractual obligations. Mutual rescission and release agreements can be custom tailored to include conditions, waivers, and any number of other terms that afford additional protections to individuals canceling important contracts. Use this interactive form to create a mutual rescission and release agreement that is suitable to dissolve nearly any contract by mutual consent.