ContractsOption_contracts_and_right_of_first_refusalEASY
Why does an option contract typically require separate consideration from the optionee?
Correct Answer
B) To make the owner's promise to keep the offer open binding and irrevocable during the option period
Separate consideration makes the optionor's promise irrevocable for the option period. Without it, the owner could revoke the offer at any time.
Answer Options
A
To pay the real estate agent's commissionB
To make the owner's promise to keep the offer open binding and irrevocable during the option periodC
To cover the property's insurance costsD
To satisfy the Statute of FraudsWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Background Knowledge for Contracts
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Real World Application in Contracts
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Related Topics & Key Terms
Key Terms:
option_contracts_and_right_of_first_refusalcontractsconsiderationirrevocable
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