Gazumping occurs when which of the following occurs?

Gazumping occurs when which of the following occurs?

• A. The buyer reneges on the contract after exchange.
• B. The seller refuses to proceed after acceptance.
• C. An offer that has been accepted is superseded by a higher offer from another buyer before contracts are exchanged.
• D. The buyer refuses to complete on time.

Answer: (C)

Gazumping happens in a property sale when an offer that has already been accepted by the seller is later replaced by a higher offer from another buyer, and this occurs before contracts are exchanged. The crucial point is that contracts haven’t been signed yet, so the seller can entertain a better bid and switch to it. That makes this scenario the correct description of gazumping. The other situations describe different problems: a buyer pulling out after exchange, a seller backing out after accepting, or a buyer failing to complete on time—none of these involve the accepted deal being overtaken by a higher offer before contracts are exchanged.

Gazumping happens in a property sale when an offer that has already been accepted by the seller is later replaced by a higher offer from another buyer, and this occurs before contracts are exchanged. The crucial point is that contracts haven’t been signed yet, so the seller can entertain a better bid and switch to it. That makes this scenario the correct description of gazumping. The other situations describe different problems: a buyer pulling out after exchange, a seller backing out after accepting, or a buyer failing to complete on time—none of these involve the accepted deal being overtaken by a higher offer before contracts are exchanged.