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In an option contract who makes a promise?

a. Buyer
b. Seller
c. The licensee
d. The listing broker.

User Mykisscool
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1 Answer

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Final answer:

In an option contract, the seller makes a promise, which can include warranties and service contracts, with the latter being a paid agreement by the buyer to have issues fixed for a set time.

Step-by-step explanation:

In an option contract, it is the seller who makes a promise to the buyer. The seller may offer guarantees such as a warranty, which is an assurance to repair or replace the purchased good for at least a specified time frame. Additionally, sellers might give the buyer the opportunity to purchase a service contract, whereby the buyer pays an additional fee, and in return, the seller agrees to address any issues that arise for a predetermined period. Service contracts are particularly common with significant acquisitions, like automobiles, home appliances, and real estate.

User Alexander Kireyev
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