What legal term refers to the retraction of a contract agreement?

The legal term that refers to the retraction of a contract agreement is rescission. This concept involves the cancellation of a contract, whereby both parties are released from their obligations under that agreement. Rescission is typically used in situations where a contract is viewed as voidable due to reasons such as misrepresentation, fraud, undue influence, or mutual mistake. It effectively nullifies the contract and aims to restore the parties to their pre-agreement positions, as if the contract had never existed.

The other terms relate to contract issues but have different meanings. Withdrawal often refers to the act of pulling out of a negotiation or an offer, but does not encompass the broader implications of voiding an entire contract. Termination typically means ending a contract, usually by one party not fulfilling their obligations or by mutual agreement. Revocation can refer to the withdrawal of an offer before it is accepted but doesn’t specifically denote the nullification of a contract itself. Therefore, rescission is the most accurate term for retracting an agreement in the context of contract law.