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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