The legal remedy that cancels a contract and returns parties to their original positions is

Recapture generally refers to the act of reclaiming lost property or rights but is not a recognized legal remedy for canceling contracts. It does not involve the formal restoration of the original status of the parties involved in a contractual obligation, making it an inappropriate choice in this context.

Rejection refers to the refusal to accept an offer in a contract, rather than a remedy to cancel an existing contract. While it can stop the formation of a contract, it does not address the need to reverse the actions taken or obligations incurred under an already established contract, thus failing to restore the parties to their original positions.

Reversion typically pertains to property law, indicating that rights or interests revert to the original owner after a certain condition is met. It does not apply to the cancellation of contracts in general and does not encompass the process of nullifying an agreement to restore parties to their prior state.