Which outcome is associated with a valid rescission of a contract?

A valid rescission of a contract results in the cancellation of that agreement. Rescission effectively nullifies the contract, returning the parties to their positions prior to its formation as if the contract had never existed. This legal remedy is typically invoked in circumstances where there has been a significant breach of contract, misrepresentation, undue influence, or other valid legal grounds.

The outcome of cancellation means that the parties are released from their contractual obligations, and they are no longer bound to fulfill the terms originally agreed upon. In contrast, the continuation of obligations, enforcement through litigation, or any extension of the contract beyond its original terms contradict the fundamental objective of rescission, which is to eliminate any further commitments and consequences arising from the contract.