The Legal Effect of Contract Rescission

Apart from its stiputation in Article 97, the current Law of Contract of our country deals little with the legal effect of contract rescission, so it's of great theoretical and practical significance to have a study of the issue. The author holds that, on principle, contract rescission has the power with recourse, but the application to durative contracts should be properly restricted. After the contract is rescinded, what belongs to the contracted should be returued to the contracted and at the same time the faulty party should compensate for the loss caused to the non-faulty party as a result of contract rescission.