A more thorough explanation:

Equitable rescission is a legal term that refers to the cancellation of a contract by a court of equity. It is a remedy that is available to a non-defaulting party who has a legally sufficient reason to cancel the contract, such as the other party's material breach or a judgment rescinding the contract.

Equitable rescission is accompanied by restitution of any partial performance, which means that the parties are restored to their pre-contractual positions. This remedy is generally used when the non-defaulting party wants to cancel the contract but cannot do so under the terms of the agreement.

For example, if a buyer purchases a car from a seller and later discovers that the car has a serious defect that the seller knew about but did not disclose, the buyer may seek equitable rescission of the contract. The court may cancel the contract and order the seller to refund the purchase price to the buyer.

Another example is when a party enters into a contract under duress or coercion. In such a case, the party may seek equitable rescission of the contract to be released from the agreement.

Equitable rescission is different from legal rescission, which is a remedy that is effected by the agreement of the parties or decreed by a court of law. Legal rescission is generally available when the parties agree to cancel the contract or when a court finds that the contract is void or unenforceable.