Contracts
In Minnesota real estate, 'mutual rescission' means:
AThe seller cancels the listing agreement unilaterally
BBoth the buyer and seller agree to cancel the purchase agreement and return to their pre-contract positions✓ Correct
CThe court orders cancellation of the contract
DThe lender refuses to fund the loan
Explanation
Mutual rescission occurs when both parties to a contract voluntarily agree to cancel it and be restored to their original positions before the contract was formed. In Minnesota real estate, mutual rescission typically requires a written cancellation agreement releasing both parties and specifying the disposition of earnest money.
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