A contract is defined under section 2(h) of the Indian Contract Act 1872. as an agreement enforceable by law is a contract. It is a civil obligation on the parties to contract. All agreements are not contracts. Only some agreements which are enforceable by law is a contract. It is a legal instrument between two or more parties to perform a service, provide a product or commit to an act and which is enforceable by law. 
If a contract is not proving to be beneficial depending on the situation, one has the option to rescind the contract. The word “rescission” is derived from the Latin term "rescindere", which means to terminate or cancel something.
Rescission means a winding-up or cancelling of a contract between the parties entered upon for a consideration. The recession of the contract is both equitable as well as discretionary in nature. The contract gets cancelled if any of the party has failed to comply with the terms of the contract or the other party has accepted the repudiation of such contract. A Contract can be terminated in the following ways
1. By performance
2..By performance of the breach of contract
3. By frustration of contract
 
The Right of recession is available to the parties under section 19 of the Indian Contract Act 1872.
These are the grounds on which repudiation of contract takes place:
 
1. Voidable contract: If the contract is voidable in nature then the parties can be discharged from the obligation of the contract. It is either voidable as void- ab- intio(void from the beginning) or by the conduct of the parties the contract becomes void.
 
2.Misrepresentation of contract: if the parties entered in a contract has made a misrepresentation of facts or has not disclosed some materials facts relating to the contract. Then the contract can be terminated on the ground of misrepresentation
 
3.Fraud:  If a contract entered upon by fraud the contract becomes void immediately. Then lead to termination of contract and Suit for cancellation of the deed can be filed by the opposite party.
 
4. Under influence: If the contract is entered upon by a person under the undue influence of any person then such contract becomes void and can be terminated.
 
5.Coercion: To give validity to a contract the law requires the free ascent of both the party who is liable under the contract. If the agreement is entered upon or obtained by threats or undue persuasion is infirm makes the contract void. coercion as defined under Section 15 of Indian 
Contract Act of 1872
 
6. Refusal to perform a contract: When a  promisor refuses to perform the contract or disables himself from performing his promise entirely, the promisee is entitled to put an end to the contract.
 
7. Time is the essence of the contract: under Section 55 the parties have agreed to complete the contract within particular period contract within a particular time frame but the if a party fails to perform its obligation then the contract becomes void.
 
Section 75 of the Contract Act 1872 provides that he who deals with the compensation for a recession of contract, he protects the right of the person who has faced damage due to non-fulfilment of the contract or the termination of the contract.