Contracts
In a North Dakota real estate auction sale, the highest bidder who wins the auction:
AHas no obligation unless they sign a separate purchase agreement later
BTypically has formed a binding contract at the fall of the hammer if the auction is 'absolute' (without reserve)✓ Correct
CMust pay cash immediately at the auction
DHas 30 days to decide whether to complete the purchase
Explanation
In an absolute auction (without reserve), the high bidder and seller have a binding contract when the auctioneer's hammer falls. In a reserve auction, the seller must confirm acceptance.
Related North Dakota Contracts Questions
- A North Dakota purchase agreement that is 'executory' means:
- If a buyer defaults on a purchase agreement, the seller's options typically include:
- Which of the following is a bilateral contract?
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- In North Dakota, the Seller's Disclosure Statement does NOT typically cover which of the following?
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- A North Dakota buyer makes a written offer and the seller verbally accepts. Is there a binding contract?
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