Contracts
Rescission of a contract means:
AOne party is released from the contract while the other remains bound
BThe contract is cancelled and the parties are returned to their original positions✓ Correct
CThe contract terms are modified by mutual agreement
DA court orders both parties to complete the contract
Explanation
Rescission cancels a contract and restores the parties to the positions they were in before the contract was formed. It may occur by mutual agreement or by court order when a contract is voidable (e.g., due to fraud or misrepresentation).
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