Business Properties, Inc. (BPI), offers to sell a cold storage warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This
A) creates an illegal contract by adding a clause to BPI's offer.
B) makes the offer irrevocable for three days if BPI accepts.
C) negates BPI's offer by changing the price term.
D) voids BPI's offer by extending the time term.

Question

Business Properties, Inc. (BPI), offers to sell a cold storage warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This
A) ​creates an illegal contract by adding a clause to BPI's offer.
B) ​makes the offer irrevocable for three days if BPI accepts.
C) ​negates BPI's offer by changing the price term.
D) ​voids BPI's offer by extending the time term.

Quizplus · Accepted Answer

The payment made by Corporate Investments to hold the offer open for three business days creates an option contract, making the offer irrevocable for three days if BPI accepts. This means that BPI cannot revoke the offer during this period, and Corporate has the option to accept or decline the offer within the specified timeframe.