ContractsIntermediateAlaska Exam

In Alaska, an option to purchase real estate requires:

AAcceptance of the option by the optionee only
BConsideration to be paid by the optionee to the optionor to keep the offer openCorrect
CRecording in the public records to be valid
DWritten approval from the Alaska Real Estate Commission, under standard practice

Why Consideration to be paid by the optionee to the optionor to keep the offer open Is Correct

Answer B: Consideration to be paid by the optionee to the optionor to keep the offer open

An option must be supported by consideration — the optionee pays the optionor to keep the offer open for the option period. Without consideration, the option is merely an irrevocable offer that can be revoked at any time.

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.

People Also Study

Practice More Alaska Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Alaska Quiz →