The legal remedy of cancelling a contract and restoring the parties to their original positions is called

Recapture is not a recognized legal term in the context of contract law. It typically refers to reclaiming or recovering something that was lost or taken, but it does not pertain to the cancellation of contracts or restoring original positions of parties involved in an agreement.

Rejection refers to the refusal of an offer or the dismissal of a contract by one of the parties. While it may terminate negotiations or prevent a contract from being formed, it does not involve restoring parties to their original positions since the contract was never valid or accepted in the first place.

Reversion is a legal term that denotes the return of property or rights to the original owner after a temporary transfer. In contract law, it does not apply to the cancellation of contracts or the restoration of parties to their original state, making it an irrelevant option in this context.