Contracts

In Alaska, a 'rescission' of a real estate contract means:

AThe contract is amended to reflect new terms
BThe contract is cancelled and parties are restored to their pre-contract positions✓ Correct
COne party is substituted for another
DThe contract is extended beyond its original closing date

Explanation

Rescission cancels the contract as if it never existed, requiring both parties to return any consideration received (the buyer gets their earnest money back, the seller regains control of the property). It can occur by mutual agreement or through legal action.

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