Contracts

A Florida seller accepts an offer 'subject to board approval.' Until the board approves, the contract is:

AFully binding on both parties
BConditional — not a binding contract until the board approves✓ Correct
CVoid — contracts cannot be conditional
DBinding only on the buyer

Explanation

An acceptance made 'subject to board approval' or 'subject to partner approval' is a conditional acceptance that creates a contingent agreement, not a fully binding contract. The contract becomes binding only upon receipt of the required approval.

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