Contracts

Rescission of a real estate contract means:

AOne party transfers their contract obligations to a third party
BThe contract is cancelled and the parties are restored to their original positions✓ Correct
CThe contract terms are renegotiated
DOne party pays damages for breaching the contract

Explanation

Rescission cancels a contract as if it never existed, restoring each party to the position they were in before the contract was made. It typically requires return of any consideration (e.g., earnest money).

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