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Mutual Rescission of Contract

Clearly terminate existing contracts with mutual consent using this Mutual Rescission of Contract Template.

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Mutual Rescission of Contract

MUTUAL RESCISSION OF CONTRACT TEMPLATE


This Mutual Rescission of Contract (“Agreement”) is entered into on [Date], by and between:

Party A:
Name: [Full Legal Name / Company Name]
Address: [Address]
Phone: [Phone Number]
Email: [Email Address]

Party B:
Name: [Full Legal Name / Company Name]
Address: [Address]
Phone: [Phone Number]
Email: [Email Address]

Together referred to as the “Parties.”


1. Background

The Parties entered into a contract titled “[Original Contract Title]” dated [Contract Date] (“Original Agreement”). Both Parties now mutually desire to rescind and terminate the Original Agreement and release each other from any further obligations.


2. Mutual Rescission

The Parties agree that the Original Agreement is hereby rescinded and shall have no further force or effect as of [Effective Termination Date].


3. Consideration

In consideration of this rescission:

  • Party A agrees to [list terms, e.g., return of deposit, release of materials].

  • Party B agrees to [list terms, e.g., waive claims, refund payments].

Each Party acknowledges that the consideration provided is fair and adequate.


4. Release of Liability

Both Parties release, discharge, and hold each other harmless from any and all claims, liabilities, or obligations arising under the Original Agreement, except as expressly stated herein.


5. Confidentiality

The Parties agree to keep the terms of this rescission confidential unless disclosure is required by law.


6. Governing Law

This Agreement shall be governed by and construed under the laws of [State/Country].


7. Entire Agreement

This document contains the entire understanding of the Parties with respect to rescission of the Original Agreement and supersedes all prior discussions or representations.


8. Signatures

By signing below, the Parties acknowledge their agreement to the terms of this Mutual Rescission of Contract.

Party A Signature: _________________________
Name:
Title:
Date:

Party B Signature: _________________________
Name:
Title:
Date:


[Optional Attachments]

☐ Copy of Original Agreement
☐ Settlement of Accounts / Refund Records

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Mutual Rescission of Contract

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For quick answers, scroll below to see the FAQ.

MUTUAL RESCISSION OF CONTRACT FAQ


What is a Mutual Rescission of Contract?

A Mutual Rescission of Contract is a written agreement in which both parties agree to cancel their prior contract and release each other from further obligations.


Why is a Mutual Rescission important?

It provides legal clarity, avoids disputes, and documents that both parties willingly ended the contract. Without it, either side might still claim ongoing obligations.


When should you use a Mutual Rescission of Contract?

Use it when both parties decide not to proceed with a contract—whether due to changes in business needs, inability to perform, or mutual benefit in termination.


What should a Mutual Rescission include?

It should reference the original agreement, specify the effective termination date, outline any consideration exchanged, include a release of liability, and state applicable governing law.


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