In an option contract,_____.
A) a separate contract for the limited purpose of holding the offer open is created
B) the offeree is bound to accept the offer
C) a joint contract is created for the limited purpose of keeping the offer open
D) the offeree has purchased the right to accept within the stated period

Question

Quizplus · Accepted Answer

If an offeree gives an offeror something of value in exchange for a promise not to revoke the offer for a stated period of time, an option contract has been created. An option is a separate contract for the limited purpose of holding the offer open.

In an Option Contract,_____