New Jersey Real Estate Practice Exam Practice Question
Is an option to purchase considered to be a form of contract?
Correct Answer: B
Rationale: An option to purchase is a form of contract because it requires consideration—something of value exchanged between parties—which is essential for contract validity.
Option A is incorrect; while terms may be finalized upon exercising the option, this does not negate the existence of the initial contract.
Option C is misleading; options can indeed be written and signed agreements, making it a valid contract form.
Option D is also incorrect; an option can be executed, as it grants the right to purchase under specified conditions, demonstrating its contractual nature.
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