Contracts
A buyer and seller have an executed purchase contract. The seller then receives a higher offer. Under the contract, the seller:
AMay accept the higher offer if it is substantially better
BIs bound by the existing contract and cannot accept the second offer unless the buyer defaults✓ Correct
CMay cancel the existing contract with 48-hour notice to the buyer
DMay accept the higher offer with the original buyer's written approval
Explanation
Once a purchase contract is fully executed (signed by both parties), the seller is legally bound by it. Accepting a second offer while under contract would be a breach. The seller may only accept another offer if the existing contract is properly terminated.
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