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bigshape
I would say yes, you are within rights to cancel.
If you're buying a bike and a big fault is not cited in the description then you are being sold a pup. Small issues are to be expected in a project bike but a seized seatpost is pretty major. See also: seized stem, bent/cracked frame, excessive rust.
Also you can arguably haggle over significant damage to parts like missing teeth on chainrings, saddles that turn out to be ripped up, etc.
The most recent issue that caught me out was a seam of rust on a 653 chainstay. After stripping the bike, melting a seized BB out with caustic and then de-rusting the frame, the rust seam was actually a crack right through the stay. Frame written off. So do be thorough and cautious.