New Jersey Real Estate Practice Exam Practice Question
A person acquires an option to purchase a parcel of another person's land. Which of the following statements is correct?
Correct Answer: B
Rationale: Option B is correct as a valid option contract must clearly outline the terms and conditions of the sale to be enforceable. Without specific details, such as price and duration, the agreement lacks clarity and can lead to disputes.
Option A is incorrect because an option is not merely a promise; it is a legally binding agreement granting the optionee the right to purchase under specified conditions.
Option C is misleading, as the treatment of consideration varies by agreement; it is not automatically applied unless explicitly stated in the contract.
Option D reverses the roles, as the optionor is the seller granting the option, while the optionee is the potential buyer.
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