Contracts

In Montana, 'mutual rescission' of a real estate contract means:

AOne party unilaterally cancels the contract
BBoth parties agree to cancel the contract, returning to their original positions✓ Correct
CA court orders the contract voided
DThe broker rescinds the contract on behalf of both parties

Explanation

Mutual rescission occurs when both parties agree to cancel the contract and return to their original positions. This typically involves return of the earnest money and any other consideration exchanged.

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