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 to her within a certain period of time if she decides to go through with the purchase.This type of agreement is called

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This type of agreement is known as an option, which gives Joan the right but not the obligation to buy the land within a certain period of time. By paying Guiaumme for the option, she ensures that he will not sell the land to anyone else during that time frame.

Joan Wants to Buy a Prime Piece of Real Estate