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As soon as the buyer requested that the seller fix XYZ, he changed the contract. At that point, the seller is no longer bound to what was signed.

I think that isn't true - but it depends on what was in the contract and the ammendment to the contract that proposed the buyer fix XYZ.

Any little change requires both buyer and seller to sign off on to continue the contract as valid.
However any change proposed by one and NOT accepted by the other means the contract continues AS-IS. Which is why all the contingencies really favor the buyer -because they are a relatively easy way for the buyer to back out of the contract.
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