Contracts
In Virginia, an option contract gives the optionee (buyer) the right to purchase a property for a fixed price within a specified period. The option consideration:
AIs always refunded if the option is not exercised
BIs typically kept by the optionor (seller) regardless of whether the option is exercised
CMust equal 1% of the purchase price
DIs applied to the purchase price if the option is exercised, but forfeited if not exercised✓ Correct
Explanation
In most Virginia option contracts, the option consideration (fee paid for the option right) is applied toward the purchase price if the option is exercised. If the buyer chooses not to exercise the option, the consideration is forfeited to the seller.
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