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is the cancellation of a contract in order to return the parties to their pre-contract position. When fraud, a mistake, duress, undue influence, misrepresentation, or lack of capacity to contract is present, unilateral rescission is available. Rescission may also be available by statute.

The failure of one party to perform entitles the other party to rescind the contract. The rescinding party must give prompt notice to the breaching party.

Generally, to rescind a contract, both parties must make restitution to each other by returning goods, property, or funds previously conveyed. If the goods or property have been consumed, restitution must be made in an equivalent dollar amount.

Because an award of restitution basically returns something to its rightful owner, a party can seek restitution in actions for breach of contract, tort actions, and other types of actions.

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• Knows that a fact is not as stated

• Makes a statement that he or she believes is not true

• Makes a statement recklessly, without regard to whether it is true or false

• Says or implies that a statement is made on some basis, such as personal knowledge or personal investigation, when it is not

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