Contracts
In Alabama, an option contract differs from a purchase contract in that:
AOption contracts must be notarized
BOnly the seller is bound — the buyer has the choice whether to purchase✓ Correct
COption contracts cannot include a purchase price
DOnly licensed brokers can create option contracts
Explanation
An option contract gives the buyer (optionee) the right, but not the obligation, to purchase the property within a specified time for a set price. Only the seller (optionor) is bound — the buyer can choose whether to exercise the option.
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