Contracts

A New Hampshire seller accepts a buyer's offer at full price. Before closing, the seller receives a higher offer from another buyer. The seller:

AMay accept the higher offer and return the earnest money to the first buyer
BMay not legally accept the second offer — a binding contract exists with the first buyer✓ Correct
CMust allow both buyers to negotiate in a 'best and final' round
DMay cancel the first contract with 72 hours' notice

Explanation

Once a valid purchase and sale agreement is signed and acceptance communicated, a binding contract exists. The seller cannot unilaterally cancel to accept a higher offer without legal consequence.

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