Roberts has the chance to buy three adjacent city lots zoned as "duplex." The most profitable return would be the building of four townhouses across the three lots,but that would necessitate getting permission from the city,and that procedure takes time.If Roberts buys a 60-day option from the seller of the properties for $400,which of the following is true?
A)By buying the option,Roberts has bought a period of time during which she must accept the land offer.
B)If Roberts does not exercise the option during the option period,she can later force the seller to sell that property to her at that price.
C)If Roberts does not exercise the option,she will get her $400 back because she didn't get what she was bargaining for.
D)The seller is bound by contract neither to sell the property to any other party nor to revoke the offer within the option period.
E)The offer for the properties will expire before the end of the designated 60-day period if another person offers a higher price.

Question

Quizplus · Accepted Answer

An option contract, such as the one Roberts buys, gives her the exclusive right to purchase the property within a specified period (in this case, 60 days) without obligating her to make the purchase. The seller, having accepted the $400 for the option, is legally bound not to sell the property to anyone else during the option period, ensuring Roberts has the exclusive opportunity to buy the property at the agreed terms within those 60 days.

Roberts Has the Chance to Buy Three Adjacent City Lots