Which of the Following Is True of an Option Contract

question 63

Multiple Choice

Which of the following is true of an option contract?

• A) If the offeree chooses not to buy the property then money paid in consideration must be returned.
• B) If money is paid as consideration, then that is not applied to the sale price.
• C) Death or incompetency of either party terminates an option contract.
• D) The offer cannot be revoke during the option period.

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Definitions:

Reservation Point

The lowest acceptable value or outcome an individual is willing to accept in a negotiation.

Conflict Management Styles

The approaches and techniques used by individuals or groups to handle disagreements, confrontations, or disputes effectively.

Conflict Situations

Circumstances that arise when the interests, needs, goals, or values of involved parties interfere with one another.

Potential Implications

Possible effects, outcomes, or consequences that could arise from a particular action, decision, or event.