Contracts
A Connecticut real estate contract contains an 'escalation clause' stating the buyer will pay $2,000 above any competing offer up to a maximum of $500,000. The competing offer is $482,000. The buyer's effective offer is:
A$484,000✓ Correct
B$500,000
C$482,000
D$490,000
Explanation
The escalation clause adds $2,000 above the competing offer: $482,000 + $2,000 = $484,000. Since $484,000 is below the $500,000 cap, the buyer's effective price is $484,000.
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