Letter of Rescission

A letter of rescission is a written notice from one party to another, formally canceling or revoking a previous agreement, offer, or contract. In the context of construction defects, a letter of rescission may be sent by a property owner to a contractor, terminating the construction contract due to the contractor’s failure to correct or cure defects within a reasonable time after notice and opportunity to do so. The letter typically includes a description of the specific defects or breaches, the previous notices and demands for correction, the contractor’s failure to comply, and the owner’s decision to rescind the contract and pursue other remedies, such as hiring a replacement contractor or seeking legal damages. The purpose of the letter of rescission is to end the contractual relationship between the parties, to stop any further performance or payment, and to preserve the owner’s rights and claims against the contractor. Rescission is a serious and consequential action that should be taken only after careful consideration and consultation with legal counsel, as it may have significant legal and financial implications for both parties. The letter of rescission should be clear, specific, and unequivocal, and should be delivered in accordance with the contract provisions and applicable laws.