Examlex
In the circular-flow diagram,
Rescission
The act of cancelling a contract and returning all involved parties to the positions they were in before the contract was made.
Innocent
Innocent refers to not being guilty of a crime or offense, or lacking knowledge of wrongdoing.
Void
Void refers to a legal declaration that a contract or transaction is null, having no effect or force in law, typically due to failing to meet certain legal requirements.
Mistake
An error or misunderstanding in the terms or conditions of a contract that can lead to its revocation or modification if all parties agree or if a court intervenes.
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