Contracts
A North Dakota buyer who provides a seller with a written notice of exercise of a purchase option:
AHas made an offer that the seller must accept or reject
BHas created a binding purchase contract by properly exercising the option✓ Correct
CMust renegotiate all terms
DStill needs the seller's acceptance to create a contract
Explanation
An option contract gives the optionee (buyer) the right, but not obligation, to purchase property at a set price within a specified time. When the buyer properly exercises the option in writing within the option period, a binding purchase contract is immediately created without needing further seller acceptance.
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