Contracts
Rescission of a contract means:
AModifying the terms of the contract
BCanceling the contract and restoring both parties to their pre-contract positions✓ Correct
CTransferring the contract rights to a third party
DEnforcing the contract through the courts
Explanation
Rescission cancels the contract entirely, treating it as though it never existed, and requires both parties to restore whatever was exchanged (e.g., return of earnest money). It may be mutual or court-ordered.
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