Contracts

In Kansas, what is a 'cancellation' of a real estate contract versus a 'termination'?

AThey are identical; both end the contract
BCancellation typically refers to ending a contract by mutual agreement or exercising a contingency; termination may refer to one party's right to end based on the other's breach✓ Correct
CCancellation requires court approval; termination does not
DTermination always results in forfeiture of earnest money; cancellation does not

Explanation

While often used interchangeably, cancellation typically refers to ending a contract by mutual consent or pursuant to a contingency right, with deposits returned. Termination may refer to one party ending the contract due to the other's material breach.

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