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The discussion centers on the difference between "cancellation" and "rescission" of a contract. Rescission implies that a contract was never valid from the start, whereas cancellation suggests that a valid contract is simply terminated. An example of rescission is found in mortgage refinancing, where homeowners have a three-day rescission period after signing. This applies specifically when refinancing a primary residence; even though the paperwork is signed, the homeowner is entitled to rescind the contract within that timeframe.
