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 that, for a certain period of time, she alone has the right to accept his offer to sell.This type of agreement is called

Question

Quizplus · Accepted Answer

The agreement where Joan gives Guiaumme $5000 in exchange for his promise that, for a certain period of time, she alone has the right to accept his offer to sell is known as an option contract. This type of contract gives Joan the option to purchase the real estate within a specified time frame, while Guiaumme is obligated to sell the property to her at a predetermined price if she chooses to exercise her option. Therefore, option D, an option, is the best choice.

Joan Wants to Buy a Prime Piece of Real Estate