If a contract has conditions, can both parties back out and sell it privately without being sued?

Answer 1

I assume you mean a home and there is a financing condition or something and you wanna cut the real estate agent out?

I suppose you could back out based on the conditions and wait until the listing contract with the agent expires, basically, ensure you have satisfied all contractual obligations and then proceed with a private sale, but I am sure you guys are not the first to think of this and the agent has some sort of recourse.

What if, in the mean time, you get an offer for more than asking price, how would you explain refusing it?

Answer 2

If both parties agree to cancel the contract (back out) then they can do so. Normally a short written contract would be made between the two canceling the first contract.

If either party cancels individually without satisfying the cancellation conditions, the other party CAN sue.