Rescinding a contract entails the cancellation or annulment of the agreement, returning both parties to their pre-contractual status. The Truth in Lending Act provides a 'Right of Rescission' which allows signers to nullify the contract within a specified period.
A right granted by the federal Consumer Credit Protection Act of 1968 allowing consumers to void a credit contract within three business days with full refund of any downpayment and without penalty.
