To cancel a contract and return to 'status quo' is

• A. A rescission
• B. A termination
• C. A novation
• D. A cancellation

Answer: (A)

Rescission is the act of canceling a contract and returning the parties to the positions they held before the agreement. When a contract is rescinded, it’s treated as if it never happened, and each side must return any consideration received, restoring the status quo ante. This is different from termination, which ends the contract going forward but doesn’t undo promises or exchanges that already occurred. A novation replaces the old contract or party with a new one, releasing the original obligations rather than undoing the deal. While cancellation is sometimes used broadly, rescission specifically conveys undoing the contract and restoring the pre-contract state.