Final answer:
A seller might sign a back-up contract with another buyer if there's a concern that the first may not close on the deal. It ensures the seller has an alternative buyer lined up. This type of contract is especially relevant in real estate transactions.
Step-by-step explanation:
When a seller is concerned that the first buyer may not be able to close on a deal, they might sign a back-up contract with another buyer. This contract would take effect if the first deal falls through. A back-up contract provides a safety net for the seller, ensuring they have a secondary party interested in purchasing the property if the initial transaction does not complete. This type of agreement is advantageous in real estate transactions to prepare for potential sale failures.
Contrary to service contracts or warranties, which are promises by the seller to repair or fix the product within a certain time period or under certain conditions, a back-up contract is specifically a real estate term used for secondary agreements should the first fall through.