New Jersey Real Estate Exam Practice Question
Is an option to purchase considered to be a form of contract?
Correct Answer: B
Rationale: An option to purchase is indeed a form of contract because it requires consideration to be valid, which means something of value must be exchanged to create a binding agreement.
Option A is incorrect; while terms may be finalized post-exercise, the option itself is a contract that grants the right to purchase.
Option C is misleading; options can be written and signed agreements, thus not invalidating their contractual nature.
Option D is also incorrect; an option can be executed, as it grants the holder the right to initiate a purchase, reinforcing its status as a contract.
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