Business Properties,Inc.(BPI),offers to sell a 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

Quizplus · Accepted Answer

This is a valid option for Corporate to make the offer irrevocable for three days if BPI accepts. This is known as an option contract, where Corporate is essentially buying the right to purchase the property for $100 within the next three days. It does not change the price term, as the $100 payment is separate from the agreed-upon purchase price for the warehouse. It also does not extend the time term of BPI's offer, as the three-day period is set by Corporate's payment for the option, not BPI's offer itself.