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In this discussion, Speaker 1 asks about the difference between cancellation and rescission of a contract. Speaker 2 explains that "rescission" implies that the contract never existed, while "cancellation" refers to ending an existing contract. Speaker 2 provides an example of rescission in the context of refinancing a mortgage, highlighting that there is a three-day rescission period for homeowners refinancing their primary residence, even if they have already signed the paperwork.