Rescission is a legal term that refers to the cancellation of a contract, returning both parties to their original positions before the agreement was made. This can occur when a contract is deemed invalid due to reasons such as fraud, misrepresentation, or mutual mistake. In a rescission, the parties involved may need to return any benefits received under the contract, such as money or property. This process helps ensure fairness and can prevent one party from being unjustly enriched at the expense of the other. Rescission is often pursued in cases involving consumer protection or business disputes.