Contracts
In Arizona, an option contract gives the optionee (buyer):
AAn obligation to purchase the property at a set price
BThe right but not the obligation to purchase the property at a predetermined price within a specified time period✓ Correct
CThe right to lease the property with an option to renew
DAn equitable interest that must be recorded to be enforceable
Explanation
An option contract gives the optionee the right—but not the obligation—to purchase the property at a set price within a defined period. The optionor (seller) is bound to sell if the option is exercised. The consideration paid for the option is typically non-refundable.
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