Final answer:
When both parties agree to terminate a contract, it is called mutual rescission or mutual cancellation. In this case, Stan and Crandall mutually agree to rescind or cancel the sales contract because Crandall has found a property he likes better.
Step-by-step explanation:
When both parties involved in a contract mutually agree to terminate it, the process is referred to as mutual rescission or mutual cancellation. In the scenario described, Stan and Crandall have reached a consensus to rescind or cancel the sales contract. Crandall's decision to pursue another property has led to this mutual agreement.
Mutual rescission essentially releases both parties from their respective obligations outlined in the contract. It implies that any rights or responsibilities specified in the original agreement are no longer enforceable. This voluntary termination is a collaborative decision, and both Stan and Crandall are freed from the contractual commitments they had initially undertaken. Mutual rescission provides a legal mechanism for parties to terminate a contract when they are in agreement to do so, ensuring that both parties can pursue alternative arrangements without the constraints of the initial contractual obligations.