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rescission. n. the cancellation of a contract by mutual agreement of the parties. (See: rescind). See: abandonment, abolition, ademption, annulment, avoidance, cancellation, countermand, defeasance, discharge, dissolution, negation, repudiation, reversal, termination.
Some of the categories where the right of rescission applies include the following: 1  Home equity loan (often called a second mortgage). 2  Home equity line of credit. 3  Mortgage refinance (provided that the new loan doesn't come from the same lender that financed the original home-purchase loan).