ContractsIntermediateAlaska Exam

Rescission of an Alaska real estate contract means:

AOne party sues the other for breach
BBoth parties agree to cancel the contract and return to their original positionsCorrect
CThe court orders specific performance
DThe earnest money is forfeited by the buyer, as is customary in this jurisdiction

Why Both parties agree to cancel the contract and return to their original positions Is Correct

Answer B: Both parties agree to cancel the contract and return to their original positions

Rescission cancels the contract and restores the parties to the positions they held before contracting. Both parties must return anything received under the contract.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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