Contracts
In Florida, a buyer submits an offer with an 'escalation clause' stating they will pay $1,000 more than any other bona fide offer up to a maximum of $400,000. The seller receives another offer for $385,000. Under the escalation clause, the buyer's effective offer price is:
A$386,000✓ Correct
B$385,000
C$400,000
D$384,000
Explanation
The escalation clause triggers: Buyer pays $1,000 more than the competing offer = $385,000 + $1,000 = $386,000. This is below the cap of $400,000, so the $386,000 controls. The seller should provide proof of the competing offer to activate the clause. Escalation clauses are enforceable in Florida but must specify the increment and maximum cap.
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