ContractsIntermediateAlaska Exam

In Alaska, a 'backup offer' is:

AAn offer made by the seller's agent on behalf of the buyer
BAn offer accepted by the seller as a secondary offer that becomes primary if the first contract falls throughCorrect
CA second mortgage placed behind the primary loan
DAn offer to purchase with a seller concession for closing costs, which most practitioners would generally accept

Why An offer accepted by the seller as a secondary offer that becomes primary if the first contract falls through Is Correct

Answer B: An offer accepted by the seller as a secondary offer that becomes primary if the first contract falls through

A backup offer is accepted by the seller in a secondary position — it waits in line and automatically moves to primary position if the primary contract is terminated. The backup buyer is legally bound to their offer while it waits, but can usually withdraw if they find another property.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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