Contracts

A Florida buyer's offer contains an 'escalation clause' up to $550,000, with a $5,000 increment over competing offers, and the listing price is $490,000. Another buyer offers $515,000. Under the escalation clause, what does the first buyer offer?

A$515,000
B$520,000✓ Correct
C$550,000
D$490,000

Explanation

The escalation clause increases the buyer's offer by $5,000 over the competing offer. The competing offer is $515,000. First buyer's escalated offer = $515,000 + $5,000 = $520,000.

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