Contracts

A Washington seller has accepted an offer from Buyer A. Three days later, a higher offer comes in from Buyer B. The seller asks their agent to find a way to cancel the Buyer A contract. The agent should advise the seller that:

AThe agent can draft a termination agreement for the seller to present to Buyer A
BThe seller cannot unilaterally cancel a binding contract without grounds, and doing so could result in a lawsuit for specific performance or damages✓ Correct
CThe inspection contingency can be used to cancel the contract
DThe seller can simply return the earnest money and the contract is void

Explanation

Once a purchase and sale agreement is fully executed, it is a binding contract. The seller cannot unilaterally terminate it without legal grounds (like buyer breach).

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