Contracts

A mutual rescission of a Pennsylvania real estate contract means:

AOne party has defaulted and the other has called off the deal
BBoth parties voluntarily agree to cancel the contract and restore the status quo✓ Correct
CA judge has ordered the contract voided
DThe broker has decided to cancel the listing

Explanation

Mutual rescission occurs when both parties voluntarily agree to cancel the contract and restore each party to their original position — the buyer receives the earnest money back and all parties are released from obligations. This requires a written agreement signed by all parties.

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