ContractsIntermediateDelaware Exam
In Delaware, an option contract in real estate gives the buyer the:
ARight and obligation to purchase by a specific date
BRight but not the obligation to purchase within a set time periodCorrect
CObligation to buy if the seller accepts
DRight to occupy the property before purchase
Why Right but not the obligation to purchase within a set time period Is Correct
Answer B: Right but not the obligation to purchase within a set time period
An option contract gives the optionee (buyer) the exclusive right, but not the obligation, to purchase the property at a specified price within a specified period, in exchange for consideration paid to the seller.
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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