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An Option Contract Is Formed When an Offeree Prevents the Offeror

question 86

True/False

An option contract is formed when an offeree prevents the offeror form revoking his or her offer by paying the offeror compensation to keep the offer open for an agreed-upon period of time.


Definitions:

In-kind Payments

In-kind Payments are compensations or benefits provided in a form other than money, such as goods, services, or other non-cash benefits.

Employer Contributions

Payments made by employers towards employee benefits, such as retirement plans, health insurance, and social security.

Employee Entitlements

Rights or benefits that are guaranteed to employees by law or company policy, such as leave entitlements, retirement benefits, and healthcare.

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in purchasing power.

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