New Jersey Real Estate Practice Exam Free 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 allows parties to cancel a contract and return to their original positions, effectively nullifying the agreement. This remedy is essential when a contract is deemed voidable due to issues like misrepresentation or fraud.
Option A, recapture, does not pertain to contract law and is more relevant in contexts like wildlife management. Option B, rejection, refers to refusing an offer rather than canceling an existing contract. Option D, reversion, involves the return of property rights but does not encompass the broader concept of canceling a contract. Thus, rescission is the appropriate term for this legal remedy.
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