Rescission
Canceling a contract and returning the parties to the positions they held before it was made.
Quick flashcard
What does Rescission mean on the Texas real estate exam?
Answer: Canceling a contract and returning the parties to the positions they held before it was made.
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Rescission definition
Rescission cancels a contract and unwinds it, returning each party to the position it was in before the contract existed. Deposits are typically returned and obligations are released.
Rescission can occur by mutual agreement, by a contract right such as a cancellation period, or as a remedy ordered by a court, for example after fraud or misrepresentation.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Contracts & Agency (16 of 80 National)
From definition to recall
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