Which of the following statements is definitely true regarding an option contract?
A) It is also known as a quasi contract.
B) It is created when the parties enter into the agreement by their actions rather than because they have actually discussed the matter.
C) It lacks mutual assent.
D) An option contract only buys the offeree time to accept or reject the offer.

Question

Quizplus · Accepted Answer

An option contract is a contractual agreement, complete with consideration, that the offeror will hold the offer open for the offeree for an agreed upon period of time. The offeror cannot revoke the offer during the period of the option. An option contract only buys the offeree time to accept or reject the offer and does not mean the offeree must accept.

Which of the Following Statements Is Definitely True Regarding an Option