Contracts
In Texas, a 'backup contract' on a property already under contract means:
AThe second buyer takes priority if the first contract falls through
BThe backup buyer agrees to purchase if the primary contract terminates, typically receiving notice and a period to exercise their position✓ Correct
CThe seller can immediately accept the backup offer and cancel the first contract
DBoth contracts are equally valid simultaneously
Explanation
A backup contract becomes effective only if the primary contract terminates. TREC's Addendum for Back-Up Contract establishes the backup buyer's position and provides that if the primary contract terminates, the backup buyer receives notice and their contract moves into primary position. The seller cannot cancel the primary contract to take a better offer.
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