ContractsOption_contracts_and_right_of_first_refusalMEDIUM
An investor holds an option to purchase a commercial property at $500,000 within 90 days. On day 91, the investor tries to exercise the option. What is the result?
Correct Answer
B) The option has expired and the investor has no right to buy at the stated terms
Option contracts have strict time limits. Once the option period expires, the holder loses the right to purchase at the stated terms.
Answer Options
A
The option is still valid because a one-day delay is reasonableB
The option has expired and the investor has no right to buy at the stated termsC
The owner must grant a 30-day extensionD
The investor automatically receives a right of first refusal insteadWhy This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
option_contracts_and_right_of_first_refusalcontractsexpirationstrict_deadline
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