ContractsIntermediateDelaware Exam
In Delaware, 'rescission' of a real estate contract means:
AOne party sues the other for breach
BThe contract is cancelled and both parties are restored to their original positionsCorrect
CThe contract terms are modified by mutual agreement
DThe closing date is extended by the parties
Why The contract is cancelled and both parties are restored to their original positions Is Correct
Answer B: The contract is cancelled and both parties are restored to their original positions
Rescission cancels the contract and restores both parties to their pre-contract positions (including return of the earnest money deposit). It may occur by mutual agreement or by court order.
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Key Contracts Terms in This Question
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