Contracts
An Idaho seller accepts an offer with an escalation clause. The escalation clause means:
AThe price increases each year by a fixed amount
BThe buyer's offer will automatically increase above competing offers up to a specified maximum price✓ Correct
CThe commission rate escalates based on the final sale price
DThe seller can raise the price after acceptance
Explanation
An escalation clause is a buyer's strategy in competitive markets: the buyer offers a set amount above any competing offer, up to a maximum cap. It helps buyers remain competitive without overbidding unnecessarily.
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