Contracts
Rescission of a contract means:
AModifying its terms by mutual agreement
BCanceling the contract and restoring the parties to their original positions✓ Correct
CAssigning the contract to a third party
DExtending the closing date
Explanation
Rescission cancels a contract and places all parties back in their pre-contract positions, including returning any deposits or consideration already exchanged.
Related California Contracts Questions
- Under California's Statute of Frauds, which of the following real estate agreements must be in writing to be enforceable?
- When a seller accepts an offer but makes even a minor change to the terms, the result is:
- Which of the following is NOT a required element of a valid contract?
- Which remedy allows a buyer to force a seller to complete the sale as agreed when the seller refuses to close?
- What is novation in contract law?
- What is 'liquidated damages' in a California residential real estate purchase contract?
- A contingency in a purchase contract:
- What happens when a buyer removes all contingencies in a California 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 →