Contracts

Rescission of a contract means:

AModifying the terms of the existing contract
BCanceling the contract and restoring parties to their original positions✓ Correct
CExtending the contract deadline
DTransferring contractual rights to a third party

Explanation

Rescission cancels a contract and restores both parties to the positions they occupied before entering the contract. Earnest money is typically returned to the buyer upon rescission.

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