canceled offer....sued by buyer - Posted by Margaret

Posted by Margaret on July 21, 2007 at 16:52:48:

We received an offer for our house, we counter offer it and the buyer verbally agreed to new price but delivered the signed contract the next day. In the mean time weâ??ve received a new offer. Our agent called the agent (from the first deal) and left a message about the cancellation of the first offer. Then we executed the second offer. After the agent (from the first offer) learned about our decision, he brought to us (sellers) signed offer and said the deal has been fully executed and we cannot sell the house to other people. Now they are suing us for the difference in price. Does the first buyer have a case? Do I have rights to cancel NOT fully executed offer? Does verbal agreement bonds the deal immediately? This is urgent, please HELP!