Contracts

In Idaho, what is 'mutual rescission' of a real estate contract?

AWhen one party backs out unilaterally
BWhen both parties agree in writing to cancel the contract and return to their original positions before the contract✓ Correct
CWhen the title company cancels the escrow
DWhen IREC voids a contract for violations

Explanation

Mutual rescission is the voluntary, bilateral cancellation of a contract by both parties, returning them to their pre-contract positions. In Idaho real estate, the parties typically sign a mutual release specifying the disbursement of earnest money.

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