Contracts
What is 'rescission' of a real estate contract in Idaho and what are the grounds for it?
AModifying the terms of an existing contract
BCanceling a contract and returning both parties to their pre-contract positions; grounds include mutual mistake, fraud, misrepresentation, duress, or failure of a condition✓ Correct
CExtending the closing date of a contract
DRecording a contract with the county clerk
Explanation
Rescission cancels a contract and attempts to restore both parties to their original positions (restitution). In Idaho, grounds for rescission include: mutual mistake about a material fact, fraudulent misrepresentation, duress or undue influence, failure of a material condition, or illegality. Upon rescission, earnest money is returned and all obligations are discharged.
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