A(n) ____ is a binding promise to keep an offer open for a specified period of time.
A) terminal contract
B) limited contract
C) express contract
D) explicit contract
E) option contract

Question

Quizplus · Accepted Answer

An option contract is a binding promise whereby a seller agrees to keep an offer open for a specified period of time in exchange for valuable consideration given by the buyer. This allows the buyer to decide whether to accept the offer during the specified time period or not.

A(n) ____ Is a Binding Promise to Keep an Offer