Contracts
A Kentucky lease-option agreement gives the tenant the right to purchase the property for $200,000 during the lease period. If the property value rises to $250,000, the option:
AAutomatically adjusts to the new market value
BRemains enforceable at the agreed $200,000 price✓ Correct
CCan be voided by the seller since the price is now below market
DConverts to a right of first refusal
Explanation
An option contract locks in the purchase price. The tenant/optionee has the right to purchase at $200,000 regardless of market appreciation. The seller cannot void the option simply because the property is worth more.
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