My wife and I made an offer on a house that was signed by the wife while the husband was supposedly out of town. My agent and the sellers agent agreed that the husband would sign upon his return. In the two days waiting for the husband to return, the sellers agent continued to show the house despite the fact the wife had signed. When no signatures showed up to my agent as of the promised time and date, the sellers agent was contacted only to find that the owners had signed a new contract with a new buyer for a higher price offer. How can the wife sign into another contract when she had signed one with us? More importantly, how can the seller's agent get away with letting her sign both contracts. This is wrong, wrong, wrong. Any feedback would be great.

Principals make decisions, not agents. Even if the husband had accepted and signed your offer (which was not the case), the seller's agent could continue to show the property for back-up offers to yours. But since there wasn't an enforceable contract to purchase in place, the seller's agent did not do anything illegal. If you were intentionally misled and lied to, then that is unethical. But if another buyer contacted the seller's agent on their own and asked to see the property, and asked to make an offer which both sellers signed, then that could be completely ethical, even though your offer lost out.

I am surprised that upon getting the higher offer, the seller's agent did not at least contact your agent to see if you would increase your offer. Sellers usually love multiple offer situations. But they are not obligated to negotiate with everyone, they can pick and choose.

Tough turn of events for you, but there is another home out there waiting for you.

A contract requires an offer and an acceptance. You made an offer. There is no contact unless there is an acceptance by the HO. The listing agent only speaks on behalf of the owners.