What must the seller provide to the purchaser if a contract is canceled?

When a contract is canceled, the seller is required to provide the return of all funds deposited by the purchaser. This requirement is grounded in the principle of restoring the parties to their original positions prior to the contract. If the contract is terminated, it is generally expected that any payments made by the buyer, including deposits, are refunded in full. This practice upholds fairness and accountability, ensuring that the buyer is not financially disadvantaged by the cancellation.

The other options do not align with standard practices regarding contract cancellations. Continued service regardless of payment status contradicts the nature of a canceled contract, where obligations cease. Compensation for emotional distress is not typically a component of contract cancellations unless specified in the contract itself or if there were significant breaches. Lastly, refunding only the deposit does not cover all funds deposited, which would not adequately fulfill the requirement of returning the purchaser to their original financial state.