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Mutual Rescission And Release Agreement Template for England and Wales

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Key Requirements PROMPT example:

Mutual Rescission And Release Agreement

"I need a Mutual Rescission And Release Agreement to terminate a software development contract with our supplier effective from 1 March 2025, including provisions for the return of source code and confidential information, plus a mutual release of all claims."

Document background
The Mutual Rescission And Release Agreement is a crucial document used when parties wish to formally terminate their existing contractual relationship under English and Welsh law. It's particularly valuable when both parties agree to end their obligations early and want to ensure a clean break with no lingering liabilities or potential for future disputes. This agreement typically includes provisions for mutual releases, arrangements for unwinding the relationship, handling of any outstanding payments or property returns, and can be customized to address specific circumstances of the original contract. It's commonly used in commercial relationships where a formal record of termination and mutual releases is important for risk management and future relationships.
Suggested Sections

1. Parties: Identifies and defines the contracting parties

2. Background: Describes the original agreement and circumstances leading to rescission

3. Definitions: Defines key terms used throughout the agreement

4. Rescission: Core clause terminating the original agreement

5. Mutual Release: Parties' release of claims against each other

6. Return of Property: Arrangements for returning any property or documents

7. Governing Law: Specifies applicable law and jurisdiction

Optional Sections

1. Confidentiality: Used when parties wish to maintain confidentiality about the rescission and its terms

2. Survival Provisions: Identifies which provisions from original agreement survive the rescission

3. Payment Provisions: Details any financial settlements between the parties

4. Third Party Rights: Addresses impact on third party rights from the original agreement

Suggested Schedules

1. Original Agreement: Copy of the agreement being rescinded

2. Settlement Terms: Detailed terms of any financial or other settlement

3. Property Schedule: List of property/items to be returned between the parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Law of Contract (Common Law): Core principles governing contract formation and enforcement, including rules of offer and acceptance, consideration requirements, capacity to contract, and intention to create legal relations

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third party rights are affected in contractual relationships, crucial for determining impact of rescission on any third party beneficiaries

Limitation Act 1980: Establishes statutory time limits for bringing different types of claims, relevant for specifying timeframes in release provisions

Unfair Contract Terms Act 1977: Regulates unfair terms in contracts, particularly important when drafting release clauses to ensure they are reasonable and enforceable

Consumer Rights Act 2015: Provides protection for consumers in contractual relationships, must be considered if any party is acting as a consumer

Companies Act 2006: Governs corporate entities' powers and authorities, relevant for ensuring proper authorization for contract termination when companies are involved

Civil Procedure Rules: Procedural framework for civil litigation in England and Wales, important for properly drafting release provisions and understanding scope of claims being released

Misrepresentation Act 1967: Deals with false statements made during contract formation, relevant when addressing potential misrepresentation claims in the release provisions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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