Question

If an owner takes his property off the market for a definite period in exchange for some consideration but grants an individual the right to purchase the property within that period for a stated price, this is called a(n):

A) Contract of sale
B) Installment agreement
C) Right of first refusal
D) Option

Answer 1

An owner giving an individual the right to purchase their property for a stated price within a certain period in exchange for consideration is called an Option. This contract allows the buyer to decide whether to exercise their right to buy within the timeframe set.

Step-by-step explanation:

When an owner takes their property off the market for a certain period in exchange for some consideration, and grants an individual the exclusive right to purchase the property during that period for a predetermined price, this is known as a Option. Options give buyers the privilege to buy the property but not the obligation, ensuring the buyer can make the purchase at the agreed-upon price within the timeframe if they choose to do so. While this option is in place, individuals or firms must own the property to enter into a legal contract.