Contracts
In South Dakota, which of the following would be considered 'adequate consideration' in a real estate option contract?
ANothing — consideration is not required for options
BA nominal amount, such as $1, if that is what the parties agree upon✓ Correct
CAt least 5% of the property's value
DThe full purchase price paid upfront
Explanation
Consideration (including a nominal amount like $1) is sufficient to make an option contract binding, provided both parties agree. The key is that something of value was exchanged to keep the offer open.
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