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Buyer’s Remorse: “Contract Rescission”

San Diego Unified School District (PERB Dec. No. 1883-E) (Issued January 27, 2007)Ever agree to something you wish you hadn't? In this case PERB addressed the concept of "contract rescission" in collective bargaining. Here, the employer agreed to a contract provision that resulted in far higher cost than the employer anticipated. The employer argued that it would be unconscionable to enforce the contract provision due to its cost. PERB held that a party seeking to rescind a contract must establish the following elements: 1) The party made a material mistake regarding a basic assumption of the contract; 2) The party…

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