Which remedy aims to return the parties to their pre-contract positions?

• A. Suit for damages
• B. Suit for cancellation
• C. Suit for specific performance
• D. Liquidated damages

Answer: (B)

Rescission (cancellation) is the remedy that undoes the contract and places the parties back in the position they were in before the agreement. It voids the contract from the outset and requires each side to return any benefit or consideration received, essentially turning back the clock to pre-contract conditions.

This differs from other remedies: damages compensate for losses after a breach rather than undoing the contract; specific performance compels the actual execution of the contract rather than undoing it; and liquidated damages are pre-agreed compensation for breach, not a restoration of the original positions.