You pay $200 for the right to be the only buyer a seller will deal with for ten days for a piece of property that is for sale for $250,000. This is:
A) called a terminable contract
B) called an option contract
C) called a revocable contract
D) not a contract because the consideration is not relevant to the value of the property
E) none of the other choices

Question

Quizplus · Accepted Answer

This is called an option contract, where the buyer pays the seller for the exclusive right to purchase the property within a specified time frame. The $200 payment is the consideration for the option contract.

You Pay $200 for the Right to Be the Only