When parties to a contract return to their original positions before entering the contract, the contract has been?

When parties to a contract return to their original positions before entering the contract, this is known as rescission. Rescission is a legal remedy that effectively nullifies the contract, treating it as if it never existed. This allows both parties to disengage from the contractual obligations and return to their pre-contract status.

In the context of contracts, rescission can occur for various reasons such as misrepresentation, fraud, undue influence, or a mutual agreement to cancel. The key aspect of rescission is that it restores the parties to their original scenario, ensuring that they are not bound by the terms of the contract any longer.

The other terms do not convey the same meaning. Canceled refers more to the act of voiding future obligations but may not necessarily restore the original positions of the parties. Revoked typically pertains to the withdrawal of an offer rather than the complete termination of an agreement. Performed indicates that all obligations under the contract have been fulfilled, which is the opposite of returning to original positions. Thus, rescinded is the most accurate term to describe this situation.