Which of the Following Is True of an Option Contract

question 53

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 revoked during the option period.

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Definitions:

Customer Transaction

Any financial transaction or activity involving the sale of goods or services to customers.

Receive Payments

The process of recording the receipt of money from customers in payment for goods or services provided.

Customer Transactions

Financial interactions or operations between a business and its customers, including sales, returns, and payments.

Create Invoices

The process of generating billing documents for goods sold or services provided, detailing amounts owed by customers.