Contracts

An option contract on North Dakota farmland gives the optionee (potential buyer):

AAn obligation to purchase the property within the option period
BThe right to purchase the property at a specified price within a specified time period✓ Correct
CImmediate ownership of the property
DThe right to subdivide the property during the option period

Explanation

An option contract gives the optionee the exclusive right—but not the obligation—to purchase the property at a set price within a specified period. The optionee pays consideration for this right.

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