Home > West's Encyclopedia of American Law > Cancellation of an Instrument

An equitable remedy by which a court relieves both parties to a legal document of their obligations under it due to FRAUD, duress, or other grounds.

Cancellation is a term often used interchangeably with RESCISSION, but whereas only a document can be canceled, any agreement—whether oral or written—can be rescinded. Cancellation is distinguishable from reformation, which is an action by a court to enforce a document after its terms have been reframed in accordance with the intent of the parties, in that cancellation abrogates the duties of the parties under the instrument.

Any instrument by which two or more parties agree to exchange designated performances, such as a contract, deed, lease, insurance policy,