A rescissible contract is a legal agreement that can be cancelled or revoked due to certain reasons outlined in the law.

According to the Civil Code of the Philippines, a rescissible contract is one that is “valid but is susceptible of rescission due to lesion or damage to one of the parties or to third persons.” This means that a rescissible contract can be voided if the contract causes harm or damage to one party or a third party.

There are several reasons why a contract may be considered rescissible. The most common reasons include fraud, undue influence, and mistake. Fraud occurs when one party deceives or misleads another party into agreeing to a contract. Undue influence happens when one party takes advantage of another party`s vulnerability, such as in cases of mental or emotional distress. Mistake, on the other hand, happens when one party has a mistaken belief about the contract`s terms or conditions.

Rescission of a contract can be initiated by the party who suffered damage or by a third party who is affected by the contract. The party seeking rescission must file a case in court within four years from the discovery of the damage. Once the court grants rescission, the contract is deemed void, and the parties must return any benefits received from the contract.

In conclusion, a rescissible contract is one that can be cancelled or revoked due to certain reasons outlined in the law. It is important to be aware of the circumstances that can lead to rescission and to seek legal advice if you believe a contract might be rescissible.