Contracts

What is a 'rescission' of a real estate contract and when is it available in Hawaii?

AA. A modification of contract terms agreed to by both parties
BB. The cancellation of a contract, restoring both parties to their original positions✓ Correct
CC. A court order enforcing specific performance of a contract
DD. A seller's right to accept a backup offer

Explanation

Rescission is the cancellation of a contract, returning both parties to their pre-contract positions. In Hawaii, rescission may be available by mutual agreement, upon material breach, or as provided by statute (such as the 7-day right to rescind a condominium purchase contract).

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