Contracts
In real estate, 'rescission' means:
AA modification of the contract terms by mutual agreement
BA court-ordered sale of the property
CCancellation of the contract and restoration of both parties to their original positions✓ Correct
DTransfer of contractual rights to a third party
Explanation
Rescission cancels the contract as if it never existed, restoring both parties to their pre-contract positions. It may occur by mutual consent, due to fraud, misrepresentation, failure of a condition, or incapacity.
Related California Contracts Questions
- What is the legal effect of a 'time is of the essence' clause in a California real estate contract?
- A seller accepts a buyer's offer by email. The buyer receives the email. When is the contract formed?
- A California residential purchase agreement includes a 17-day inspection contingency. On day 18, the buyer has not removed the contingency or canceled. What is the correct procedure for the seller?
- What is liquidated damages in a California residential purchase agreement?
- A buyer makes an offer on a home and the seller counters with a higher price. The buyer then submits a new offer at the seller's counter price. At this point, what is the legal status of the original offer?
- The 'parol evidence rule' states that:
- Which of the following is NOT a required element of a valid contract?
- What is 'liquidated damages' in the context of a California residential purchase agreement?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →