What is a defining characteristic of an option agreement?
A) It states that the option will lapse within a reasonable passage of time.
B) It states that acceptance must be presented in written form.
C) It prohibits a lapse of the original offer prior to a time set for acceptance.
D) It states written notice is required to revoke the firm offer.

Question

Quizplus · Accepted Answer

The defining characteristic of an option agreement is that it prohibits a lapse of the original offer prior to a time set for acceptance. This means that the offer cannot be revoked or canceled by the offeror during the time period specified in the option agreement, giving the offeree a certain level of security in their ability to accept the offer within the designated timeframe.

What Is a Defining Characteristic of an Option Agreement