In Ohio, an option to purchase:

An option to purchase is a fundamental concept in real estate transactions that creates significant flexibility for potential buyers while protecting sellers from being tied indefinitely to a potential deal. This concept matters because it represents a specialized contract form where one party pays for the exclusive right to purchase property later, without being obligated to do so. The question tests understanding of the basic nature of options, which is distinct from standard purchase contracts. Breaking down the options: A is incorrect because options are not binding on both parties - only the option holder has rights. B correctly identifies the essence of an option - it gives the buyer a right but not obligation. C is wrong because options require consideration (typically payment of an option fee). D is incorrect as options can be for any duration agreed upon by parties. This question is challenging because it requires distinguishing options from other contract types and understanding the one-sided nature of option contracts. This concept connects to broader real estate knowledge regarding contract formation, consideration, and the unique characteristics of different agreement types.