ContractsOption_contracts_and_right_of_first_refusalEASY
An option contract is described as 'unilateral' in nature. What does this mean?
Correct Answer
D) The optionor is bound to sell if the optionee exercises, but the optionee has no obligation to buy
An option contract is unilateral because only the optionor is bound (to sell at the stated terms if the optionee exercises). The optionee has the right but no obligation to buy.
Answer Options
A
Both parties are obligated to performB
Only the optionor has rights under the contractC
The contract must be signed by only one partyD
The optionor is bound to sell if the optionee exercises, but the optionee has no obligation to buyWhy This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
option_contracts_and_right_of_first_refusalcontractsunilateraloption_nature
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