Article: The Proprietary Consequences of Rescission in Equity

This chapter addresses the doctrinal uncertainty in English law regarding the proprietary consequences of equitable rescission for transfers made under impaired consent. The central claim of the chapter is that equity grants transferors rights of increasing proprietary intensity to protect disputed assets from dissipation during the prolonged process of obtaining an order for rescission. This theoretical framework clarifies two major doctrinal debates: first, it explains why the “equity to rescind” operates as a personal power that nonetheless binds third parties; second, it argues that in fraud cases, equitable rescission should take effect upon a party’s election to rescind rather than upon a court order, while also advocating for enhanced proprietary protection following disaffirmation even in non-fraud cases.