What is a Mutual Rescission and Release Agreement?
There's never a guarantee that a contract will work out. Perhaps the arrangement isn't as profitable as you hoped, or maybe it's not the right fit. Sometimes, you just have a change of heart. When everyone involved wants out, use a Mutual Rescission Agreement to dissolve it without further ado. Essentially, the agreement will leave each party as they were before penning the deal. It can also absolve you from any future rights or responsibilities. As long as you and your partners are on the same page, you don't need to wait for the clock to run out on a disappointing contract.
When to use a Mutual Rescission and Release Agreement:
- All parties under contract wish to terminate or cancel their existing contract in its entirety.
MUTUAL RESCISSION AND RELEASE AGREEMENT
This MUTUAL RESCISSION AND RELEASE AGREEMENT ("Rescission") is made and entered into this (the "Effective Date") by and between , of , , and , of , (collectively, the "Parties").
WHEREAS the Parties entered into a on ("Original Contract"), attached hereto as Exhibit A and incorporated herein by reference;
WHEREAS the Parties acknowledge that neither Party has fully performed its duties or obligations pursuant to the terms and conditions set forth in the Original Contract;
WHEREAS the Parties to the Original Contract and to the Rescission hereby mutually agree to rescind the Original Contract thereby returning the Parties to their respective positions before the Original Contract's effective date;
NOW THEREFORE, for the reasons set forth above, and in consideration of the mutual covenants of the Parties hereto, the Parties agree as follows:
|1.||The Original Contract is hereby terminated and deemed null and void as of the Effective Date and neither party shall have any further rights or legal obligations thereunder.|
|2.||The Parties release and forever discharge any and all liabilities that have arisen or may arise from the Original Contract, and the Parties waive any and all claims or right to assert any claim which has arisen or may arise from the Original Contract prior to the Effective Date of this agreement.|
IN WITNESS WHEREOF, and has caused this Rescission agreement to be signed as of the Effective Date.