An option agreement is viewed by the courts as a gratuitous promise.

Name: An option agreement is viewed by the courts as a gratuitous promise.
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An option agreement is a legally binding contract between two parties, where one party pays the other for the exclusive right to engage in a transaction on an asset at a predetermined price and within a specified time period. It is not considered a gratuitous promise because it involves consideration (the payment for the option), making it enforceable by law.

An Option Agreement Is Viewed by the Courts as a Gratuitous