Joan wants to buy a prime piece of real estate from Guiaumme, but she is waiting to find out whether the bank will give her a loan. In order to make sure that Guiaumme does not sell the land to anyone else, Joan gives him $5000 in exchange for his promise not to sell the land. This type of agreement is called

Question

Quizplus · Accepted Answer

An option is a contract in which one party pays for the exclusive right to purchase an asset at a specified price within a certain period, ensuring the asset is not sold to others during that time.

Joan Wants to Buy a Prime Piece of Real Estate