Contracts
A Minnesota property seller accepts a buyer's offer but then receives a backup offer at a higher price. Can the seller cancel the first offer to accept the second?
AYes, since the seller should always get the highest price
BNo, once a purchase agreement is signed, the seller is bound by contract✓ Correct
CYes, if the backup offer is at least 5% higher
DYes, if the cancellation is done within 3 days of acceptance
Explanation
Once a purchase agreement is fully executed in Minnesota, both parties are bound by its terms. The seller cannot simply cancel to accept a higher offer without breaching the contract. The seller can accept the backup offer as a backup (to be used if the first deal falls through), but cannot cancel the first binding agreement to pursue a better deal without risking specific performance claims and damages.
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