Contracts
In a NH real estate contract, an escalation clause without a cap on the buyer's maximum price is:
AStandard practice that always works in the buyer's favor
BRisky for the buyer, who could be obligated to pay far above their comfort level in a bidding war✓ Correct
CAlways struck down by NH courts
DOnly valid in commercial contracts
Explanation
An uncapped escalation clause could require the buyer to pay far beyond their intended budget. Buyers should always include a maximum cap in any escalation clause to protect against an unlimited bidding spiral.
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