Contracts
A Minnesota seller accepts an offer and the parties have a binding purchase agreement. The seller then receives a higher offer. The seller may NOT accept the second offer because:
AHigher offers must always be rejected after acceptance
BThe original contract is binding and the seller cannot breach it without consequences✓ Correct
CMinnesota law prohibits considering other offers after acceptance
DThe listing agent controls all offers after acceptance
Explanation
Once a purchase agreement is fully executed in Minnesota, it is a binding contract. The seller cannot simply accept a higher offer without breaching the first contract.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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