What common distinguishing characteristic may be attributed to both an option agreement and a counteroffer?
A) Both can result in a lawsuit for damages if deliberately rejected by the offeror.
B) Both are subject to revocation by the offeror prior to a lapse of a set period of time.
C) Both form a separate contract that may or may not lead to the acceptance of an offer.
D) Both serve to prohibit the lapse of an offer before a set time period has expired.

Question

Quizplus · Accepted Answer

Both an option agreement and a counteroffer involve the creation of a separate contract. An option agreement is a contract in which the offeror agrees not to sell to anyone else for a specified period in exchange for consideration, creating a separate contract. A counteroffer, while rejecting the original offer, proposes a new offer, effectively creating a new potential contract.

What Common Distinguishing Characteristic May Be Attributed to Both an Option