Contracts
What does 'rescission' of a contract mean?
AAn amendment to the contract terms
BThe cancellation of a contract, restoring all parties to their original position✓ Correct
CThe transfer of contract rights to another party
DThe extension of a contract's deadline
Explanation
Rescission cancels the contract entirely, as if it never existed. All parties are restored to the positions they were in before contracting — the buyer gets their deposit back and the seller retains the property. Rescission can be mutual or court-ordered.
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