Contracts
In Minnesota, a seller who accepts an offer 'subject to board approval' has created which type of contract?
AA binding purchase agreement
BA conditional acceptance that does not create a binding contract until board approval is obtained✓ Correct
CAn executory contract
DAn illusory promise
Explanation
When a seller (such as a corporate entity, nonprofit, or property with a board) accepts an offer subject to board approval, the acceptance is conditional—no binding contract exists until the board formally approves the transaction. The buyer should understand they are not in a binding contract and the seller may still entertain other offers during the approval process.
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