Final answer:
The two promises in an option contract are the optionee's promise to buy the property within the option period and the optionor's promise not to sell to others during that period. These contractual elements ensure the optionee's exclusive right to purchase and the optionor's commitment to hold the property. Similar to warranties and service contracts in larger purchases, these promises create binding obligations.
Step-by-step explanation:
The two contractual promises of an option contract are: (1) the optionee's promise to purchase the property within the option period, and (2) the optionor's promise not to sell the property to anyone else during the option period.
These promises create a legal obligation whereby the optionee secures the exclusive right to buy the property within a specified timeframe, and the optionor is bound to that agreement, ensuring the property is not sold to another party. In essence, the optionor grants the optionee the possibility to execute the purchase while maintaining the status quo regarding the property's availability.
Warranties and service contracts often accompany large purchases, similar to an option contract. A warranty is a commitment to repair or replace a good within a specific time frame, while a service contract entails additional buyer payment in exchange for extended maintenance services. While different in nature, these agreements also represent obligations that parties may voluntarily enter into regarding the transfer of goods, services, or property.