ContractsQuestion 62 of 100
The cancellation of a contract that returns the parties to their positions before it was formed is called:
a.Rescission
b.Novation
c.Assignment
d.Acceleration
Explanation
Rescission cancels a contract and seeks to restore the parties to their original pre-contract positions, often with a return of deposits. It may occur by mutual agreement or as a remedy for fraud or misrepresentation. It differs from novation, which substitutes a new agreement.
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