ContractsIntermediateArizona Exam

An option contract in Arizona gives the buyer:

AThe obligation to purchase property at a set price within a time period
BThe right, but not the obligation, to purchase property at a set price within a time periodCorrect
CThe right to lease a property with no purchase commitment
DEquitable title immediately upon signing

Why The right, but not the obligation, to purchase property at a set price within a time period Is Correct

Answer B: The right, but not the obligation, to purchase property at a set price within a time period

An option contract grants the buyer the right, but not the obligation, to purchase property at an agreed price within a specified period. The seller is bound to sell; the buyer is not bound to buy.

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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