My parents sold their house but they breached a part of the contract. As a result, the other party sued my parents in California small claims court. The court date is in 2 weeks.
We've contacted the party and arranged an agreement/compromise via text to drop the lawsuit for 2 actions: cash payment and signature of escrow papers. After the other party offered this, we agreed via text. The next day we completed half of the agreement, the signature, and we're in the process of completing the second part, the cash payment.
That same day, the other party decided to increase the payment my parents would do. All this is in text messages, both the offer and agreement on both sides, word by word, and agreement. My question is, is the other party allowed to do this even after coming to an agreement?