ContractsOption_contracts_and_right_of_first_refusalEASY
A lease-option agreement gives the tenant the right to purchase the rental property at a predetermined price during the lease term. If the tenant exercises the option, what occurs?
Correct Answer
A) The tenant enters into a purchase contract at the predetermined price
When the tenant exercises a lease-option, a purchase contract is created at the terms specified in the option agreement.
Answer Options
A
The tenant enters into a purchase contract at the predetermined priceB
The lease automatically extends for another yearC
The landlord can refuse to sellD
The option fee is forfeitedWhy 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_refusalcontractslease_optionexercise
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