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:

Raw Materials

Basic materials that are used in the production of goods, finished products, or intermediate materials that are feedstock for future finished products.

Cheap Labor

The employment of workers at wages that are considered lower than the norm for their industry or region.

Regionalization

Regionalization is the division of the world into different and often competing economic, political, and cultural areas.

European Union

A political and economic union of 27 European countries that are tied by a single market and a variety of policies aiming at ensuring freedom, security, and justice.