Contracts

Which of the following best describes an option contract in Oregon real estate?

AA contract where both parties are obligated to complete the transaction
BA unilateral contract giving the optionee the right, but not the obligation, to purchase property within a set period for a set price✓ Correct
CA listing agreement with a set expiration date
DAn agreement to lease with an automatic purchase at lease end

Explanation

An option contract is a unilateral contract: the seller (optionor) is bound to sell if the buyer (optionee) exercises the option, but the buyer has no obligation to purchase. The buyer pays option consideration for this right.

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