Contracts
A Texas real estate contract is subject to 'rescission' when:
AThe buyer wants to renegotiate the price
BOne party seeks to void the contract and restore both parties to their pre-contract positions, typically due to fraud or mutual mistake✓ Correct
CThe seller wants to increase the price
DThe listing agent changes brokerages
Explanation
Rescission voids a contract and restores the parties to their original positions — as if the contract was never made. Grounds for rescission include fraud, misrepresentation, mutual mistake, or failure of condition. All consideration must be returned.
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