In Texas, a license holder receives the option fee check from the buyer's agent. How should the license holder handle this payment?
Correct Answer
C) Deliver it to the seller promptly as specified in the contract
The option fee must be delivered to the seller (or seller's agent for the seller) promptly as specified in the contract. Unlike earnest money, the option fee goes directly to the seller, not to an escrow agent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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