Contracts
What is the legal effect of 'rescission' of a real estate contract?
AThe parties modify the contract terms
BThe contract is cancelled and the parties are returned to their pre-contract positions✓ Correct
CThe contract is assigned to a new buyer
DThe seller must accept the buyer's last offer
Explanation
Rescission cancels the contract as if it never existed, restoring both parties to their original positions. Earnest money is typically returned to the buyer upon rescission.
Related Arkansas Contracts Questions
- Mutual assent in a contract requires:
- The 'time is of the essence' clause in a real estate contract means:
- Mutual mistake occurs in a contract when:
- An interpleader action is used by a broker when:
- A contract for the sale of real property signed by a 16-year-old minor in Arkansas is:
- Which clause in a purchase contract allows a seller to continue marketing the property and accept a better offer, giving the original buyer the right to remove a contingency or lose the contract?
- A contract that is 'voidable' differs from a 'void' contract in that a voidable contract:
- An option contract in real estate gives the optionee the:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →