Contracts

What does 'rescission' of a contract mean?

AThe contract is amended
BThe contract is cancelled and parties are restored to their original positions✓ Correct
CThe contract is assigned to a third party
DThe contract continues with new terms

Explanation

Rescission cancels a contract and restores both parties to the positions they were in before the contract was entered into. It may occur by mutual agreement or as a legal remedy for breach or misrepresentation.

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