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:

Cash Withdrawal

The act of taking money out of a bank account, which decreases the account balance.

Accounts Receivable

Unsettled dues from customers to a business for goods or services that have already been delivered or used.

Fees Earned

Revenue generated from providing services to clients or customers.

Unadjusted Trial Balance

A list of all ledger accounts and their balances at a certain time before any adjustments are made for year-end closing.