Contracts
When both parties to a Georgia real estate contract mutually agree to cancel it, this is known as:
AA. Rescission✓ Correct
BB. Breach
CC. Novation
DD. Accord and satisfaction
Explanation
Rescission is the mutual cancellation of a contract by both parties, returning them to their pre-contract positions. All consideration (including earnest money) is typically returned. This differs from a breach, which is a unilateral failure to perform.
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