Escrow & Title
In Hawaii, what is 'rescission of contract' vs. 'cancellation of escrow'?
AA. They are the same thing; the terms are interchangeable
BB. Rescission cancels the contract as if it never existed (restoring parties to original positions); cancellation of escrow terminates the escrow instructions without necessarily canceling the underlying contract✓ Correct
CC. Rescission only applies after closing; cancellation applies before
DD. Cancellation of escrow automatically triggers a rescission of the contract
Explanation
These are distinct: contract rescission undoes the agreement; escrow cancellation terminates the escrow account and instructions, which may occur for various reasons while the contract may still be alive.
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