1. Nope, other than the names, this is an actual situation happening right now.
2. No, the agreement is an apartment association template and does not have any language that it is not bound until/unless they have signed.
Landlord Albert has a vacant three bedroom apartment and finds a group of three, Betty, Carl, and Deb, who like the unit and fill out an application. Albert runs credit and checks references.
Though the three are not perfect, the unit has been vacant for more than a month and Albert is eager...