Contracts
A buyer and seller enter into a contract for the sale of land. Before closing, the seller dies. What happens to the contract?
AThe contract is automatically voided
BThe contract is binding on the seller's estate and must be performed✓ Correct
CThe buyer must renegotiate with the heirs
DThe contract becomes unenforceable
Explanation
A real estate contract generally survives the death of a party. The seller's estate is bound to perform the contract, and the executor or administrator must complete the sale.
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