Contracts

In Oregon, 'rescission' of a real estate contract means:

AModifying the contract terms by mutual agreement
BCanceling the contract and restoring both parties to their pre-contract positions✓ Correct
CTransferring the contract rights to a third party
DAccelerating the closing date

Explanation

Rescission is the legal cancellation of a contract, returning both parties to their positions before the contract was formed. In real estate, rescission means the buyer gets their earnest money back and the seller gets their property back. It can occur by mutual agreement, upon exercise of a contingency, or as a legal remedy for fraud, misrepresentation, or mutual mistake.

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