An option contract in Alabama gives the optionee the:
Why Right but not the obligation to purchase the property Is Correct
Answer B: Right but not the obligation to purchase the property
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Key Contracts Terms in This Question
People Also Study
Related Alabama Questions
- An Alabama purchase contract's inspection contingency typically gives the buyer the right to:Contracts
- In Alabama, an option to purchase is binding on the optionor (seller) but NOT on the optionee (buyer) because:Contracts
- In Alabama, a buyer's right to rescind a purchase contract within 3 days applies most commonly to:Contracts
- A purchase contract includes a seller's right to continue showing the property. If the buyer does not remove their contingency within a specified time after receiving a backup offer notice, the contract:Contracts
- Under the Alabama Landlord-Tenant Act, if a landlord fails to make required repairs within a reasonable time after written notice, the tenant may:Property Management
- In Alabama, a life estate gives the life tenant the right to:Property Ownership
- A 'lease option' (lease with option to purchase) gives the tenant the:Property Management
- An Alabama real estate broker must keep a copy of every listing and purchase contract for a minimum of:Alabama License Law
Key Terms to Know
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →