If you pay $1000 for a 90-day option on property offered at $200,000, which of the following is true?
A) You have bought a 90-day period of time within which you may or may not accept the offer of the land.
B) The seller of the land can revoke the offer of the land any time before acceptance.
C) With the signing of the option agreement, you have entered into two contracts a contract for time and another for land.
D) If you do not exercise the option, you can get your $1000 back.
E) You have agreed that you will accept the offer of land within the 90-day period.

Question

Quizplus · Accepted Answer

By paying for the option, you have purchased a period of time within which you may or may not accept the offer of the land. The option does not require you to accept the offer, but it gives you the right to do so within the 90-day period. The other options may or may not be true, but option A is the best choice that is definitely true.

If You Pay $1000 for a 90-Day Option on Property