ContractsIntermediateAlaska Exam

In Alaska, an option contract grants the optionee:

AThe obligation to purchase the property at the stated price, under standard practice
BThe right but not the obligation to purchase the property within a specified periodCorrect
CThe right to list the property for sale
DImmediate title to the property

Why The right but not the obligation to purchase the property within a specified period Is Correct

Answer B: The right but not the obligation to purchase the property within a specified period

An option contract gives the optionee (buyer) the exclusive right to purchase the property at an agreed price within a specified time period but does not obligate them to do so. The optionor (seller) is bound to sell if the option is exercised.

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

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