Contracts
What is the legal effect of an option contract in Arizona?
AIt binds both parties to complete the transaction
BIt gives the optionee the right but not the obligation to purchase within the option period✓ Correct
CIt creates a lien on the property
DIt transfers title immediately
Explanation
An option contract gives the optionee (buyer) the exclusive right to purchase the property at a set price within a specified time, but the optionee is not obligated to buy. The optionor (seller) is bound.
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