Contracts, Transfer, and Escrow Practice Question

Question

A property manager is preparing a written response involving rescission. Which statement best describes rescission? (Item 91)

Answer choices

1. A. It is controlled only by local custom rather than by law, contract, or professional duty.
2. B. It is valid only when the buyer pays cash and no lender is involved.
3. C. Recognize cancellation that returns parties to their pre-contract positions.
4. D. It prevents any later disclosure, even when new facts become known.

Correct Answer

C. Recognize cancellation that returns parties to their pre-contract positions.

Explanation

The correct answer is C because rescission requires candidates to recognize cancellation that returns parties to their pre-contract positions. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.

Question details

• Difficulty: easy
• Domain: Contracts, Transfer, and Escrow
• Objective: rescission

Practice more

Start Contracts, Transfer, and Escrow practice

Back to Contracts, Transfer, and Escrow