Final answer:
The correct description for the contract where a landowner gives a developer the right to buy land at a fixed price within a specific time is an option, used often in real estate for securing potential future transactions.
Step-by-step explanation:
The contract in question can be properly described as an option. An option gives the holder the right, but not the obligation, to buy a parcel of land at a fixed price within a specified time.
This type of contract is particularly useful for developers who may require time to arrange financing or to obtain necessary permits before committing to the purchase. Owning property includes the right to enter into contracts with other parties, and contractual rights are based on property rights, providing recourse through the legal system in case of disputes. Unlike service contracts or warranties that offer repair or replacement for a certain period, an option simply secures the possibility of a future transaction.