Contracts
Which of the following best describes an escalation clause in a purchase offer?
AA clause allowing the seller to raise the price after acceptance
BA clause that automatically increases the buyer's offer in set increments above competing offers up to a maximum amount✓ Correct
CA clause requiring the seller to respond within 24 hours
DA clause linking the purchase price to the appraised value
Explanation
An escalation clause automatically increases the buyer's offer price by a specified increment above any competing offer, up to a stated maximum, allowing the buyer to remain competitive in a multiple-offer situation without overpaying unnecessarily.
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