Contracts

In South Dakota, a 'right of rescission' differs from a 'right of cancellation' in that rescission:

AOnly applies to commercial contracts
BRestores both parties to their pre-contract positions as if the contract never existed✓ Correct
COnly allows the buyer to exit the contract
DRequires court approval in all cases

Explanation

Rescission cancels the contract and restores both parties to their original positions — money is returned, obligations are eliminated. It is as if the contract was never formed.

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