Contracts
In Rhode Island, what does 'rescission' of a real estate contract mean?
AThe contract is modified to change the closing date
BThe contract is cancelled and the parties are restored to their original positions as if the contract never existed✓ Correct
COne party assigns the contract to a third party
DThe contract is assigned to a new buyer
Explanation
Rescission cancels a contract and attempts to restore both parties to their pre-contract positions. Both parties agree to undo the deal, and consideration exchanged (such as earnest money) is returned.
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