rescission


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Related to rescission: Equitable remedy

rescission (ri·siˑ·zhn),

n the termination of a contract, either by a party legally entitled to do so or by court order.
References in periodicals archive ?
What is more, the IRS itself has not signaled strong antipathy to the rescission doctrine as much as it suggested that in the current budget climate, scarce resources could not be devoted to providing "comfort" rulings on the topic.
Specifically, a private letter riding has approved the merger of a target corporation into the parent to restore the parent's cost basis in target stock, even though a principal purpose for the rescission seems to have been a federal tax reason (Letter Ruling 200701019).
What this particular scenario highlights, however, is how messy a situation can become when a rescission action is involved.
rather, the problem lies with the remedy that follows rescission.
Our first closing occurred on June 25, 2007; therefore no rescission wasoffered.
However, it should never come to this, since the insurance laws of any state in which an insurer wishes to write health policies should be inclusive of a provision or two barring cancellations or rescissions of policies based on innocent or negligently made mistakes done by the insured or anyone acting on behalf of the insured in filling out an application for insurance.
Taxpayers and its owners successfully avoided taxation on the reconversion under the rescission doctrine.
Because of massive alleged corporate frauds, insurers are increasingly seeking to obtain rescission of the policies they issued in reliance on financial statements and other representations of management.
Those electing to serve as directors and officers face the possibility of such personal exposure, as insurers increasingly turn to the remedy of rescission in response to corporate fraud and other wrongdoing.
These allocations may include an undetermined across-the board rescission that will be applied to all accounts.
However, Congress holds the trump card: if it doesn't act, the president's rescission is automatically rejected.
The mere threat of rescission, even if not carried to conclusion, often places the company in the terrible position of not only fighting off multiple securities class actions and potential regulatory investigations--and absorbing the potentially huge costs associated with both--but fighting its insurance carriers as well.