cancellation

Cancellation is the act of rendering a document void by crossing it out, tearing it, or otherwise defacing it with the intent to nullify it. In contract law, cancellation occurs when a party terminates a contract, often because of the other party’s breach. Cancellation differs from rescission: rescission voids a contract and restores the parties to their original positions, while cancellation typically ends the contract with respect to any future performance.

[Last reviewed in August of 2025 by the Wex Definitions Team] 

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