Contracts
A seller accepts a buyer's offer. Before the buyer is notified, the seller receives a better offer and calls the original buyer to revoke acceptance. Can the seller revoke?
AYes, because acceptance was not yet communicated
BNo, because acceptance of an offer forms a binding contract upon acceptance, not upon communication to the buyer✓ Correct
CYes, but the seller must return the earnest money
DNo, only if the buyer's agent was notified
Explanation
Under general contract law, acceptance forms a binding contract at the time of acceptance (or when communicated, under some rules). The seller cannot unilaterally revoke their acceptance. However, when acceptance is communicated affects this under various state laws.
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