Contracts

An escalation clause in an Indiana purchase offer states that the buyer will pay $2,000 more than any competing offer up to a maximum of $350,000. If the competing offer is $342,000, the buyer's offer is:

A$342,000
B$344,000✓ Correct
C$350,000
D$352,000

Explanation

The buyer's price = competing offer + $2,000 = $342,000 + $2,000 = $344,000, which is below the $350,000 cap.

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