New Jersey Real Estate Practice Exam Practice Question
The legal remedy of canceling a contract and restoring the parties to their original positions is called
Correct Answer: C
Rationale: Rescission is the legal remedy that cancels a contract, returning both parties to their original positions, effectively nullifying the agreement.
Option A, recapture, refers to reclaiming something but does not specifically address contract cancellation. Option B, rejection, involves refusing to accept an offer but does not restore the original state of the parties involved. Option D, reversion, pertains to the return of property or rights to a prior owner but is not a term used for canceling contracts. Thus, rescission is the only option that accurately describes the complete annulment of a contract.
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