Which of the following is true of an option contract?
A) If the offeree chooses not to buy the property, then money paid in consideration must be returned.
B) If money is paid as consideration, then that is not applied to the sale price.
C) Death or incompetency of either party terminates an option contract.
D) The offer cannot be revoked during the option period.

Question

Quizplus · Accepted Answer

Option contracts are unique because they give the holder the right to execute the contract within a specified period, during which the offeror cannot revoke the offer. This ensures that the holder can decide to proceed with the transaction under the agreed terms without the risk of the offer being withdrawn.

Which of the Following Is True of an Option Contract