Contracts
In Michigan, which of the following BEST illustrates the concept of 'consideration' in a real estate option contract?
AThe optionor's signature on the agreement
BThe option fee paid by the optionee to the optionor in exchange for keeping the option open✓ Correct
CThe property's appraised value
DThe optionor's ability to sell to others
Explanation
In a Michigan option contract, the consideration is the option fee paid by the optionee (buyer) to the optionor (seller) in exchange for the seller's promise to keep the offer open. Without this consideration, the option may be unenforceable.
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