New Jersey Real Estate Exam Practice Question
Under a rescission agreement, the
Correct Answer: B
Rationale: Under a rescission agreement, parties are returned to their original positions, and all monies must be returned. This ensures fairness by restoring both parties to their pre-contract state.
Option A is incorrect because a rescission does not imply that the purchaser is in default; rather, it nullifies the contract entirely. Option C misrepresents the situation; rescission does not automatically indicate that the seller is in default, as it applies to the contract's validity rather than performance issues. Option D is misleading; while a contract can be voidable, rescission specifically involves the cancellation and restoration of parties, not merely an option to void.
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