We'll assume you're an expert on the U.S. Constitution and, by extension, the Bill of Rights and the other amendments...you know, the first amendment (freedom of press, religion, etc.), the fifth amendment (don't talk to the police) and, of course, the twenty-third amendment (we don't have to explain that one, do we?).
The same idea behind Constitutional amendments applies to amendments in the financial world. A contract exists (like the Constitution). The parties want to change the contract ("hey, it looks like you guys forgot to guarantee free speech...let's fix that before we really get going on this government thing"). So amendments are added to the contract to enact the changes.
In business, companies can amend contracts to update information and alter terms. New prices, an updated end date, altered delivery expectations, even things like changed addresses can get worked into the original contract through amendments.
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Finance: What is Rescission?6 Views
finance a la shmoop what is rescission think of a season as a sale and then you [Sign for a 'garage scission']
read it that is you undo it rescission is the noun form of rescind
and you'll notice the base spellings of scissors in there kinda sorta it's like
you're cutting the sale or the contract or the deal well why would you rescind a [A contract is cut by scissors]
sale well maybe the eggs were in fact rotten
and you weren't in Denmark or maybe the contract stipulated that Super Bowl
t-shirts had to be delivered before Super Bowl Sunday so when they arrived [The before term in the contract is highlighted]
the Monday afterward while that contract got rescinded or the rescission might
have happened because the product just didn't work the way it was you know
supposed to another big example comes from your kindly loving insurance [Woman looks upset with her champions t-shirt]
underwriters you claimed you had a smoke detector in your house but you didn't
and after your buddy pyro Pete's visit while the house burned down the [Pyro Pete using a flamethrower in the kitchen]
insurance adjuster looks and looks for that smoke detector but doesn't find it
and guess what your insurance contract claim is rescinded you lied [Rescinded stamp]
ie made fraudulent representations so you know no soup for you or no million [Firefighters working on a blaze]
dollar insurance policy payout well rescission happens or can happen in
nearly any and all sales transactions sometimes that of buyers behest like
during the cooling off period immediately after someone has purchased [Someone handing over a check]
a car and is experiencing buyer's remorse or if the wife is experiencing
you know marriers remorse yeah oh well sorry there [Husband doesn't look impressed by the food his wife has cooked]
maybe go with the car
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