Contracts
A seller accepts an offer and then receives a higher offer before closing. The seller may:
AAccept the higher offer and return the first buyer's earnest money
BBreach the contract and face legal liability, but must honor the first contract unless released by the buyer✓ Correct
CCounter the first buyer to match the higher offer
DCancel the listing and relist at a higher price
Explanation
Once a contract is formed, the seller is legally bound to honor it. Accepting a higher offer and backing out of the first contract would constitute breach.
Related Arkansas Contracts Questions
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